I have a hospitality business (limited company) and have contributed to the cost of double glazing and soundproofing of a neighbouring property, due to noise complaints. These complaints would likely have shut down my business if a solution had not been reached. Is this cost tax-deductible?  

Arthur replies: 

These costs should certainly be allowable costs for your business, because they are wholly and exclusively for the requirements of the business. The only issue is whether they are revenue costs, which can be offset against annual profits of the business, or capital costs, which have to wait to be offset until the business is eventually sold. In ScottishPower plc v HMRC [2025] EWCA Civ 3, the Court of Appeal held that payments made to silence complaints that were threatening to close the business were deductible for tax purposes.