BIM51425 | Breweries: tied houses - inadmissible deductions

No deduction should be allowed for:

• compensation to an outgoing tenants for not requiring any payment for `goodwill' from their successors

• payments to existing tenants for accepting new agreements prohibiting them from requiring any payment for `goodwill' from their successors

• compensation paid to tied tenants for surrender of their tenancies when tied houses are taken into the management of the brewery group (see Watneys London Ltd (and Another) v Pike [1982] 57 TC 372)