How VAT Bridging on Commercial Property Works: Everything You Need to Know
If you’re planning to buy or sell commercial property, you’re probably aware of the complexities involved. One of the most significant challenges in commercial property transactions is dealing with VAT (Value Added Tax) charges. If you’re a buyer, you’ll need to pay VAT upfront, and if you’re a seller, you’ll need to wait for your VAT refund from HMRC. This can cause cash flow problems and delay your property deal. That’s where VAT bridging finance comes in.
In this article, we’ll explain how VAT bridging on commercial property works and how it can benefit you.
What is VAT Bridging on Commercial Property?
VAT bridging finance for commercial property is a type of financing that can help businesses cover the VAT due when purchasing commercial property in the UK. In the UK, VAT is charged on commercial property purchases, and it is usually due within 30 days of completion. BloomSmith was the first to pioneer this type of financing, and we continue to lead the way in offering it to businesses.
Our VAT Bridging loans are fair priced short term loans to cover you until we reclaim the VAT from HMRC.
We ensure that our clients have the financial support they need to complete their commercial property transactions with ease.
As the leading VAT Bridging company, we also take care of the VAT reclaim process, ensuring that our clients receive their refunds as quickly and efficiently as possible. Our expert guidance and support throughout the process make us the go-to choice for businesses looking to purchase commercial property with ease.
Trust BloomSmith to provide you with a hassle-free VAT Bridging experience that will help you unlock the value of your commercial property investment.
How Does VAT Bridging on Commercial Property Work
When a commercial property is being sold in the UK, VAT is applied to the sale and while you can claim the VAT back, you first have to pay this and then wait for the VAT reclaim from HMRC. This is where BloomSmith steps in and takes control of the VAT reclaim for you, by taking full control of the VAT reclaim, we offer our loans with no traditional security such as a legal charge over the property, all of our security is in our process. We can loan to a new application within 48 hours, with no legal charge.
Benefits of VAT Bridging on Commercial Property
The benefits of VAT Bridging are:
- Your cash is free and not tied up with HMRC until the reclaim has been completed.
- VAT Bridging sits under your main loan, without a charge, keeping the senior lender happy.
- Fast loans, funds are deployed and the VAT due paid within 48 hours.
FAQs
VAT Bridging is a type of finance that helps commercial property buyers, sellers, and developers deal with VAT charges. It is a short-term loan that covers the upfront payment of VAT on commercial property transactions.
Commercial property transactions involve significant amounts of money, and VAT charges can cause cash flow problems for buyers and sellers. VAT Bridging helps to bridge the gap between the VAT payment and the receipt of a VAT refund from HMRC.
