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HMRC internal manual

Business Income Manual

HM Revenue & Customs
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Breweries: What are allowable deductions?

Allowable expenses

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 [1965] 42 TC 509.

Non-allowable expenses

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 [1901] 4 TC 430, Morse v Stedeford [1934] 18 TC 457 and Pendleton v Mitchells & Butler Ltd [1968] 45 TC 341
  • payments to Guarantee Fund Trustees

As regards legal and professional expenses of applications for licences for licensed houses, see BIM61405.