---
title: "What is VAT bridging?"
description: "Election for VAT: Property owners may opt to charge VAT, enabling them to reclaim VAT on property-related expenses. This requires notifying HMRC within 30 days before making any exempt supplies."
url: "https://mortgagelane.com/guides/vat-bridging/what-is-vat-bridging"
site: "Mortgage Lane"
collection: "guides"
date: "2026-04-13"
author: "Written by an adviser at Mortgage Lane"
category: "Mortgage guide"
reviewed: "2026-10-08"
reading_time: "2 min"
byline: "Written by an adviser at Mortgage Lane"
author_credentials: "CeMAP · FCA authorised firm"
language: "en-GB"
robots: "index,follow"
---

# What is VAT bridging?

Election for VAT: Property owners may opt to charge VAT, enabling them to reclaim VAT on property-related expenses. This requires notifying HMRC within 30 days before making any exempt supplies.

Election for VAT: Property owners may opt to charge VAT, enabling them to reclaim VAT on property-related expenses. This requires notifying HMRC within 30 days before making any exempt supplies.

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

Bridging finance

Short-term finance used to fund VAT due on a transaction while an eligible VAT recovery or another repayment source is arranged.

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

Back to overview

[VAT Bridging Loans](https://mortgagelane.com/short-term-finance/vat-bridging)

Related definitions

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

·

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

## What is VAT bridging?

At Mortgage Lane, we offer specialised guidance on VAT bridging, a crucial financial tool for managing VAT on properties and land elected for VAT, including new freehold commercial properties less than three years old. VAT bridging becomes necessary when reclaiming VAT from HMRC, a process that can take up to six months.

### Understanding VAT Bridging and Its Necessity

Election for VAT: Property owners may opt to charge VAT, enabling them to reclaim VAT on property-related expenses. This requires notifying HMRC within 30 days before making any exempt supplies.

Transfer of Going Concern (TOGC): If a property is being purchased as a TOGC, VAT is not payable.

### VAT Bridging Loan vs. Cash Advance

VAT Bridging Loan: This is generally more suitable for funding VAT on property transactions. It’s specifically tailored to accommodate the time it takes to recoup VAT from HMRC.

Cash Advance: Known as a ‘merchant cash advance’, this is a short-term borrowing option used for business purposes, including VAT. However, it differs from a VAT bridging loan in terms and suitability for VAT financing.

### How Mortgage Lane Can Assist with VAT Bridging

Loan Repayment Advice: We provide advice on how to spread loan repayments over an affordable term, ensuring financial viability.

Connecting with Lenders: Our expertise in VAT bridging enables us to connect you with suitable lenders, ensuring you have the right financial support for your VAT obligations.

At Mortgage Lane, we understand the complexities of VAT in property transactions and offer tailored VAT bridging solutions. Whether you’re dealing with reclaiming VAT or making informed decisions about VAT charges on your property, our team is here to guide you through the process and connect you with the right lending solutions.

## 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/vat-bridging/what-is-vat-bridging