Nigel Smith

Nigel Smith

Claiming VAT Back on a Commercial Property Purchase

For many, being charged VAT on commercial property purchases is an unwelcome surprise. VAT is not always charged on commercial property, so many do not expect the charge if it occurs, and may be confused as to why they are being asked to pay such a substantial commercial VAT sum. However, sometimes there is VAT for commercial property purchases, usually because the previous owner has ‘opted to tax’. This can occur for a variety of reasons, such as a landlord wishing to undertake vast renovations on the property; by ‘opting to tax’, the landlord can claim VAT back on the work being undertaken.

The Facts

  • VAT on commercial property purchases cannot be avoided
  • The VAT will be combined with the property cost to then determine the stamp duty
  • You can secure a loan to cover the cost of VAT on commercial property
  • You do not have to continue the ‘opted to tax’ once you own the property

If it is the case that you have been met with an unexpected VAT charge, you cannot avoid paying VAT on this commercial property, no matter your own business situation. What’s more, the stamp duty will also be increased by the added sum of VAT on the property. Due to this, many find that their commercial property purchase is halted by the sudden increase in charge.

At BloomSmith, we have personal experience with sudden and unexpected VAT charges on a commercial property. We created our company in order to provide bridging loans to those in this situation in order to help complete the commercial property purchase as soon as possible.

If you’re in the process of purchasing a commercial property and have found yourself faced with a VAT cost, we can provide you with options to cover this cost, no matter how quickly you need it. Speak to the BloomSmith team today about VAT on commercial property and ensure you don’t find yourself caught out during your purchase journey.

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