Tax timing on Property Development business

[MickyV]

Please forgive the simplified example:

I have a long-standing limited company business which is classed as a Property Investment company. Its traditional business is as a residential landlord. Recently it has branched out into Property Development within a Joint Venture of which it constitutes 50%. [I just mention the structure in case it makes any difference, though I cannot see why it would.]

This year the JV spent £100k buying a house (A) and a further £100k converting it into flats. It has also bought another house (B) for £100k, intending to do the same thing. It has managed to sell the flats in House (A) for £250k. The JV has not done any other business.

Do the participants in the JV now need to pay CT on the £50k profit we have earned from House (A) ? Or can we look at it that we now have an overall £50k invested in Property Development Fixed Assets with no CT to pay yet?

[wamstax]

Unfortunately the profit will be chargeable to Corporation Tax