Suros Capital sees rise in tax demand enquiries

Suros Capital has reported a rise in the number of applications for urgent funding to pay tax bills before the 31 January deadline.

Since Christmas, the luxury asset lender has seen a 36% spike in the number of enquiries from financial advisers seeking immediate funding solutions from clients, with unexpected tax demands or those with immediate cashflow issues who cannot temporarily find the funds to satisfy the tax call.

As part of the service, Suros was contacted by a small business owner and part-time property developer, who was facing an unexpected tax bill of £47,000 due on 31 January. The siutaitons arose from a decrease in business revenue during the COVID pandemic and a subsequent increase.

The expected tax bill for 2023 had been calculated on their considerably reduced income in the previous financial year, however, with the rebound of businesses in 2023, they faced a higher amount to settle their account in January.

The client owns Banksy fine art, which once valued and secured meant that the full £47,000 was released to the adviser’s client within 48 hours of enquiry. The loan is for four months, which at the end of which time, the client will be in funds and able to repay the loan.

Business development director at Suros Capital, Ed Blackmore, said: "At this time off year, we see a significant increase in the number of cases seeking temporary short-term funding for income tax demands.

"Every year, the number of enquiries increases as advisers are recognising the value of having a lender who can lend against a luxury asset within 24 to 48 hours of enquiry. The completion time is just dependent on how quickly we can assess the luxury asset."

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