BIM51420 - Breweries: tied houses: admissible deductions

Revenue expenses incurred by brewers (whether under contract or voluntarily) directly in connection with tied houses are admissible deductions.See Usher’s Wiltshire Brewery Ltd v Bruce [1914] 6 TC 399 which is discussed at BIM37200. For the tax treatment of rent, see BIM51430.

The expenses may include:

• repairs and maintenance of houses, fixtures etc
• fire and licence insurance premiums
• expenses of defending licences
• rates and taxes
• licence duties
• Compensation Fund Charge
• losses on loans to tied tenants (see BIM42710)
• premiums paid to provide `death in service’ benefits for tenants under the Licensed House Tenants’ Pension Fund Scheme C