Commercial Property VAT Loans

When buying commercial property VAT may be included. If you’re registered for VAT a property VAT loan may improve cash flow whilst you’re waiting to reclaim

VAT on commercial property

Commercial Property VAT Loans

When buying commercial property, VAT is often included in the price if the vendor has opted to tax the property. This is known as an ‘opted in‘ commercial property and the vendor will issue a VAT qualifying invoice for the sale of the property.

If the buyer is VAT registered and will be using the building solely for the purpose of running the business, then they will be able to reclaim this input tax after it has been paid.

This can mean that large amounts of working capital is tied up with HMRC whilst a reclaim is being processed which can take between 45 to 120 days from the date of purchasing the property.

An alternative is a VAT loan on your new commercial building which will keep cash in your business.

What is a Commercial Property VAT Loan

Commercial property VAT loans bridge the gap between the purchase and the VAT being recovered by the business. There are many advantages to being able to finance the VAT including being able to make higher-value purchases without tying up your capital, retaining liquidity and enabling your business to grow.

A VAT loan apart from improving cash flow when purchasing commercial property can also be used when purchasing land, machinery, vehicles and stock when VAT is included in the sale price.

Indicative Terms

Get an understanding of how a commercial property VAT loan can work for your business when buying a commercial property and on what terms before making an application.

Some benefits of using us

In addition to property valuations, building insurance, and legal support, we offer a wide range of additional services. For information on this, please see our Business Support Services and Trusted Partner Network.

Our business support and brokerage services include fully packaging and submitting your business loan application in addition to ensuring the most competitive rates and terms. We will ensure that your commercial mortgage and commercial property VAT applications are prepared quickly and efficiently. At the same time, we will keep you updated on your application’s progress in order that funds are available in the shortest possible time.

Our offer

In particular, we offer all our clients a truly ‘one-stop-shop’ facility, specifically to provide you with a fully managed and professional business support and brokerage service. Our mission is to secure the most competitive funding offer for your circumstance available from the whole of the market.

Whatever your finance requirements, we offer a free, impartial, and confidential initial consultation and will quickly assess your funding options.

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