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