Suros Capital sees surge of enquiries to settle tax demands
25 January 2024
Suros Capital, the luxury asset lender, has reported a rise in applications for urgent funding to pay tax bills before the January 31st deadline.
The lender has seen a 36% spike in the number of enquiries since Christmas 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.
Ed Blackmore, Business Development Director at Suros Capital, commented, “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.”
The case study below illustrates just how quickly Suros can respond.
A small business owner and part-time property developer was facing an unexpected tax bill of £47,000 due on January 31st. This situation arose from a decrease in business revenue during the Covid pandemic and a subsequent increase. The expected tax bill for 2023 had been calculated based on their considerably reduced income in the previous financial year. However, with the rebound in their businesses in 2023, they faced a substantially higher amount to settle their account in January.
The client owns Banksy fine art, which once valued and secured meant that the full £47000 was released to the adviser’s client within 48 hours of enquiry. The loan is for four months, at the end of which time, the client will be in funds and able to repay the loan.
