---
title: "VAT bridging"
description: "How VAT bridging loans can cover the gap before a VAT refund."
url: "https://mortgagelane.com/guides/bridging-loan-guide/vat-bridging"
site: "Mortgage Lane"
collection: "guides"
date: "2026-04-13"
author: "Joseph Lane"
category: "Mortgage guide"
reviewed: "2026-10-08"
reading_time: "1 min"
byline: "Joseph Lane"
author_credentials: "CeMAP · FCA authorised firm"
language: "en-GB"
robots: "index,follow"
---

# VAT bridging

How VAT bridging loans can cover the gap before a VAT refund.

How VAT bridging loans can cover the gap before a VAT refund.

[Bridging loan](https://mortgagelane.com/definitions?term=bridging-loan)

Bridging finance

A short-term loan secured against property or land to cover a funding gap until an agreed repayment event, such as a sale or refinance.

[Read the full definition of Bridging loan](https://mortgagelane.com/definitions?term=bridging-loan)

Back to overview

[Bridging Loan Guide](https://mortgagelane.com/guides/bridging-loan-guide)

Related definitions

[Bridging loan](https://mortgagelane.com/definitions#def-bridging-loan)

## 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](https://mortgagelane.com/short-term-finance/vat-bridging).

## Talk it through with an adviser

Speak to a Mortgage Lane adviser about your circumstances and the next steps.

Published: 2026-04-13

Last reviewed: 2026-10-08

Source: https://mortgagelane.com/guides/bridging-loan-guide/vat-bridging