The investment properties were last revalued professionally at an open market valuation in September 2017 at a combined value of £2.9 million. The current valuation, in the opinion of the directors, is in the region of £9.5 million, the company having acquired further properties since 2017 and also spent considerable sums on refurbishment and lease extensions.
The current valuation has not been incorporated in these financial statements.
The historic cost of the properties is £ 4,589,382 (2023 - £4,589,382).
Potential liability to deferred taxation based on the revalued amount of £2.9 million would be £160,000. This would arise only if the company were to sell the properties at the value in the accounts. At present there is no intention to sell the remaining properties held as long term investments. No provision has therefore been made in these accounts.