The situation
On a £1m opted property that's £200k of VAT to find on completion. Ties up cash you'd rather use in the trading business, and most main lenders won't roll it into the mortgage.
How we approach it
We arrange specialist VAT bridges — narrow purpose, short term, priced accordingly. The reclaim goes direct to the lender, closing the loan cleanly.
What that looks like in practice
- Funds VAT element only, typically 100% of the VAT
- 3-6 month term matched to expected HMRC reclaim window
- Interest usually rolled, redeemed on reclaim receipt
- Sits alongside main commercial mortgage, no interference
- VAT registration and option-to-tax status verified upfront
Typical timeline
- Week 1-2Terms in parallel with main mortgage arrangement.
- CompletionVAT bridge draws alongside main loan, VAT paid to seller.
- Post-completionVAT reclaimed from HMRC, direct redemption of bridge.
Common questions
How long does HMRC take to refund the VAT?
Usually 30-90 days from the return in which you claim it. First-time claims and unusual patterns can take longer — plan for the outer end.
Is the interest cost deductible?
Generally yes as a business expense — take specific advice, but treatment is usually straightforward.
What if HMRC challenges the reclaim?
The bridge term extends, at cost. This is why option-to-tax status must be watertight before committing — we verify it early.
Don't tie up trading cash in VAT
Tell us the completion date and VAT amount — terms usually issue within a working day.