Notes to the Consolidated Financial Statements (continued)

15. Trade and other payables (continued)

16. Investment in a Joint Venture

The Group has a 50% interest in Waterfront Development (6C) Limited, a joint venture involved in constructing residential apartments and ground floor commercial units in Jersey. The Group’s interest in Waterfront Development (6C) Limited is accounted for using the equity method in the Consolidated Statement of Financial Position..

Summarised financial information of the joint venture, prepared in accordance with IFRS, and a reconciliation with the carrying amount of the Group’s investment in the joint venture as at 31 December 2022 are set out below:

16. Investment in a Joint Venture (continued)

The Group’s share of the loss for the year was £310,570 (2021: £732,425).

For the year ended 31 December 2022, all costs and expenses incurred by Waterfront Development (6C) Limited satisfied the criteria for capitalisation except for those recognised in administration expenses and finance costs, as presented. This included the capitalising the eligible property management expenses charged by the Group to Waterfront Development (6C) Limited.

The joint venture had commitments as at 31 December 2022 totalling £16.65m (2021: £44.72m).

Waterfront Development (6C) Limited is prohibited from distributing its profits without the consent of its two shareholders.

17. Commitments and contingencies

The Group has no significant contingent liabilities.

The Group’s undrawn commitment to the Joint Venture as at 31 December 2022 was £325,000 (2021: £325,000). Other than those disclosed in Note 16 in relation to the joint venture, the Group has capital commitments of £20.77m (2021: £38.94m) in respect of developments under construction.

18. Taxation Income Tax

The Group is exempt from paying Income Tax in Jersey. On 19 October 2007, the Minister for Treasury and Resources exempted the Company and its fully owned subsidiaries from income tax under Article 115 of the Income Tax (Jersey) Law 1961 as the profits of the Group are to be expended wholly and exclusively to improve and extend public infrastructure and works for the good of the public of the Island.

The joint venture will, however, be liable for Income Tax on its profits.

Goods & Services Tax

The Group is registered for Goods & Services Tax (GST) and pays GST on all goods and services purchased in Jersey.