After the announcement the Treasury said limited company buy-to-let investors with more than 15 residential properties will escape the hike taking place in April next year.
Limited company buy-to-let lending volumes have doubled to around 5,000 per month since the July budget, when Chancellor George Osborne revealed that the amount of mortgage tax relief higher rate buy-to-let taxpayers will be able to claim back will be gradually cut from 45% in 2017 to 20% in 2020.
Golding, chief executive of OneSavings Bank, which trades under the Kent Reliance and InterBay brands, said: “The Chancellor has trained his sights on buy to let, given the sector’s rapid rise in value, but the changes to the tax treatment in the last six months will bring unintended consequences.
“First, the rush to put properties inside a limited company will be sustained, especially if larger scale investors are indeed exempted from the new stamp duty surcharge.
“Secondly, the buy-to-let market will see activity hit overdrive between now and April as landlords seek to beat the stamp duty deadline.”
