Company No: 10301930 (England and Wales)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2022		2021
		£		£
Fixed assets
Investment property	3	1,215,500		1,031,693
		1,215,500		1,031,693
Current assets
Debtors	4	1,596		412
Cash at bank and in hand		2,374		2,922
		3,970		3,334
Creditors: amounts falling due within one year	5	( 262,056)		( 265,448)
Net current liabilities		(258,086)		(262,114)
Total assets less current liabilities		957,414		769,579
Creditors: amounts falling due after more than one year	6	( 745,276)		( 745,263)
Provision for liabilities	7	( 32,567)		0
Net assets		179,571		24,316
Capital and reserves
Called-up share capital		2		2
Fair value reserve	8	164,796		16,072
Profit and loss account		14,773		8,242
Total shareholders' funds		179,571		24,316

For the financial year ending 31 July 2022 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Clifton Harmony Limited (registered number: 10301930) were approved and authorised for issue by the Director on 27 April 2023. They were signed on its behalf by:

J E Osborne Director

B Osborne Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Clifton Harmony Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Mansion House, Princes Street, Yeovil, BA20 1EP, England, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.

Turnover

Turnover comprises the fair value of the consideration received or receivable for property rental income in the ordinary course of the company’s activities. Turnover is shown net of returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Rental income received in advance of the period to which it relates is included as deferred income within other creditors on the balance sheet, and rental income received in arrears of the period to which it relates is included as accrued income within other debtors on the balance sheet.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date that are expected to apply when the timing differences reverse. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit. Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.

Investment property

Investment property is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at each reporting date with changes in fair value recognised in profit or loss. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

The fair value is determined annually by the directors, on an open market value for existing use basis.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Ordinary share capital

The ordinary share capital of the Company is presented as equity.

2. Employees

	2022		2021
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	2		2

3. Investment property

	Investment property
	£
Valuation
As at 01 August 2021	1,031,693
Fair value movement	183,807
As at 31 July 2022	1,215,500

Valuation

The investment properties were revalued at 31 July 2022 by the directors on investment market value basis. The directors have considered the valuation of all investment properties at the balance sheet date and the conclusion was drawn that they are materially correct.

There has been no valuation of investment property by an independent valuer.

4. Debtors

	2022		2021
	£		£
Other debtors	1,596		412

5. Creditors: amounts falling due within one year

	2022		2021
	£		£
Trade creditors	2,190		0
Corporation tax	4,603		5,278
Other creditors	255,263		260,170
	262,056		265,448

6. Creditors: amounts falling due after more than one year

	2022		2021
	£		£
Bank loans (secured)	745,276		745,263

Bank loans included above totalling £745,276 (2021 - £745,263) are secured by fixed charges against the properties to which the mortgages relate. The properties are held within investment properties on the balance sheet.

Amounts repayable after more than 5 years are included in creditors falling due over one year:

	2022		2021
	£		£
Bank loans (secured)	745,276		745,263

7. Provision for liabilities

	2022		2021
	£		£
Deferred tax	32,567		0

8. Changes in equity

	Fair value reserve
	£
At 01 August 2021	16,072
Transfer of fair value adjustment from profit and loss reserve - investment property revaluation	183,807
Transfer of fair value adjustment from profit and loss reserve - deferred tax on revaluation	( 35,083)
Total comprehensive income	148,724
At 31 July 2022	164,796
At 01 August 2020 (as previously stated)	0
Prior year adjustment (note 2)	0
At 01 August 2020 (as restated)	0
Transfer of fair value adjustment from profit and loss reserve - investment property revaluation	16,072
Total comprehensive loss	16,072
At 31 July 2021	16,072