Chapter CG72450
| Published date | 12 March 2016 |
| Record Number | CG72450 |
| Court | HM Revenue & Customs |
| Issuer | HM Revenue & Customs |
The guidance below considers the legislation or codes of practice applying to licensed tenancies. In particular:
- Landlord & Tenant (Licensed Premises) Act 1990 (England and Wales)
- Brewers’ Code
The guidance then considers tenancies covered by the Brewers’ Code.
In particular, the guidance considers:
- Security of tenure
- Right to compensation
- Amount of compensation
Finally the guidance considers the computation of gains arising under the Brewers’ Code including:
- Allowable expenditure
- Wasting assets
- Private residence relief
2. Landlord & Tenant (Licensed Premises) Act 1990
Under the Landlord & Tenant (Licensed Premises) Act 1990, certain tenancies of licensed premises in England and Wales were brought within the protection of the Landlord & Tenant Act 1954.
From 11 July 1992 onwards, any tenancy of licensed premises entered into after 11 September 1989 is subject to the Landlord & Tenant Act 1954 and can only be terminated in accordance with the provisions of that Act.
If compensation is received by an outgoing tenant of licensed premises in respect of such a tenancy, the case should be dealt with in accordance with the instructions at CG72328.
The guidance which follows only relate to tenancies of licensed premises not subject to the Landlord & Tenant Act 1954.
3. Licensed premises not protected by the 1990 act
Most licensed premises are held on annual tenancies which are renewable from year to year. For Capital Gains purposes, such a tenancy is treated as a single continuous tenancy not as a series of one-year tenancies.
Security of tenure
Tenants of licensed premises have no security of tenure, other than the right to the period of notice provided by the tenancy agreement (usually 12 months).
A notice to quit, giving the necessary period of notice, can be issued by the brewer at any time and for any reason.
The tenant normally has no right to compensation for the loss of the tenancy, either statutorily or under the tenancy agreement itself.
Brewers’ Code
However, most brewers operate under a Code of Practice which provides that displaced tenants will either be offered the tenancy of another public house or will be paid compensation.
That compensation will not be less than the amount which the tenant would have received if the tenancy had been subject to the Landlord & Tenant Act 1954. The Code of Practice does not give the tenant a legally enforceable right against the brewer.
Compensation payments
Before...
To continue reading
Request your trial