VAT bridging

VAT bridging. Where VAT at 20% is payable upfront on a commercial purchase but reclaimable from HM Revenue & Customs (HMRC), a VAT bridge funds the VAT element only, typically for 3 to 6 months, secured on the property or other assets, repaid from the refund. Some lenders also manage the reclaim process, coordinating with the borrower's accountant and applying the refund directly to redeem the loan. Full detail: VAT bridging loans.