Jonny Towers

Jonny Towers

BloomSmith: Delivering Value to Your Clients with VAT Bridging Loans

At BloomSmith, our market leading expertise is driven by experience and collaboration, particularly with our valued network of accountants.

So, as we draw to the end of tax season, we’d like to tell you about what we do best: VAT Loans for VAT elected commercial properties. Let’s refresh your mind with some new learning and discover how you can bring further value to your clients by working with us in this technical but fascinating area.

What is a BloomSmith Commercial Property VAT loan?

A BloomSmith VAT loan allows your client to cover the VAT due on the purchase of their elected commercial property.

This enables them to complete their transaction, whether this is an audit client for their occupation, a real estate advisory client for an investment, or development opportunity.

Things you may know: when is VAT chargeable on a commercial property?

VAT is chargeable on a commercial property where:

  • The property has been elected for VAT
  • The owner has registered their interest in that property
  • The owner has registered for VAT themselves

This is referred to as an “opted in” commercial property.

Can buyers reclaim the VAT on commercial property transactions from HMRC?

The VAT must be paid upon purchase of the property. Then, the VAT reclaim is submitted and repaid upon approval from HMRC within 30 to 120 days.

BloomSmith manages this process, in conjunction with their advisors for the client, allowing them to focus on the next transaction.

How much can a client borrow through a VAT bridging loan?

We can facilitate up to £20 million-plus.

Is it possible and normal to borrow 100% of the VAT charge?


Does BloomSmith take security on the property?

No. Our collaboration with HMRC means that the loan is secured on repayment from them.

So, how is the loan secured?

At BloomSmith, we lend on process. The loan is secured on recovery from HMRC rather than on available equity in the property.

Is this normal in the market?

No, it is unique. This is why we are market leaders.

Other lenders require a second charge on the property as security for the loan. BloomSmith does not require this. In our experience, high-quality borrowers, (with capable advisors), do not like to subsume their equity or incur extra legal costs negotiating Charges and Deeds of Priority.

How do you reclaim the VAT from HMRC?

BloomSmith manages this with the client and their advisors, tailoring our service to them. We oversee the recovery of the VAT direct from HMRC and deal with all inquiries, leaving the client to focus on their new purchase and business development. This speeds up recovery and reduces interest payment costs by reducing the term of the loan.

What are the advantages of BloomSmith VAT provision?

  • It’s fast.
  • Its cost effective.
  • We operate using a simple process.
  • Client equity remains free for other deals.
  • We recognise all introductions and your client receives a full service, including the funds to meet and then manage their HMRC reclaim.

Get in touch

To hear more about our processes or enquire further, you can call us on 020 3488 3411or fill out our enquiry form at

Neil Petty, Director. Mobile: 07970740360

Nigel Smith, Director. Mobile 0777091459

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