BIM51420 - Breweries: tied houses: admissible deductions

Expenses, not of a capital nature, incurred by brewers (whether under contract or voluntarily) directly in connection with tied houses are admissible deductions ( Usher's Wiltshire BreweryLtd v Bruce [1914] 6TC399); as regards the treatment of rent, however, 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.