Commercial Property
Short-term bridging designed specifically to cover the VAT element on commercial property acquisitions. Preserve your working capital while HMRC processes your reclaim — typically 4 to 8 weeks.
When purchasing a commercial property where the seller has opted to tax, VAT at 20% becomes payable on top of the purchase price at completion. Even if you will ultimately recover this VAT from HMRC, you still need to fund it upfront — often a significant six or seven-figure sum that cannot be left unplanned.
A VAT loan (sometimes called a VAT bridge) is a short-term facility designed specifically for this situation. It covers the VAT liability on day one of completion, then is repaid as soon as your VAT reclaim is processed by HMRC. The net cost to you is simply the interest on the loan during that period — often far lower than the opportunity cost of tying up that capital.
When you agree to buy a commercial property where 20% VAT is payable on completion, we arrange a short-term VAT facility that completes at the same time as your main acquisition. The VAT loan funds the full VAT element directly at completion, so your working capital is preserved.
Straight after completion, your accountant submits your VAT return to HMRC. HMRC typically processes the reclaim within 4 to 8 weeks and pays the refund, which is used to repay the VAT loan — so you pay only the short-term interest.
Covers 100% of the VAT liability on commercial property purchases.
Typical term of 2–6 months, aligned with HMRC processing timescales.
Works alongside your main acquisition finance and completes simultaneously.
All commercial property sectors considered.
Available to companies, LLPs, SPVs and other legal entities.
Rapid turnaround to meet your acquisition completion date.
We welcome every enquiry. With access to a wide panel of specialist lenders, it is always worth a conversation to see how we can help.
Get in touchBridging & commercial finance specialists
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