Breweries: What are allowable deductions?
Where an attempt is made to enhance permanently the sales potential of retail outlets, for example by securing a relaxation of the licensing laws, then, exceptionally, a deduction may be allowable if the expenditure forms part of a continuous campaign to promote trade. See Cooper v Rhymney Breweries Ltd  42 TC 509.
No deduction is to be allowed in respect of-
- expenses of applications (whether successful or not) for the removal of existing licences, including payments for `call of licence’ or payments of compensation to tenants of tied houses. See Southwell v Savill Bros Ltd  4 TC 430, Morse v Stedeford  18 TC 457 and Pendleton v Mitchells & Butler Ltd  45 TC 341
- payments to Guarantee Fund Trustees
As regards legal and professional expenses of applications for licences for licensed houses, see BIM61405.