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HMRC internal manual

Business Income Manual

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