In a bid to sidestep the incoming taper relief on mortgage interest rate payments, beginning in 2017, thousands of landlords have been placing properties in Special Purpose Vehicles since the Summer Budget in July last year.

Today, the government confirmed only properties worth less than £40,000 along with houseboats and caravans will be exempt the 3% Stamp Duty surcharge. In last year’s Autumn Statement, George Osborne said buy-to-let investors with 15 or more properties in a limited company structure would not be subject to a 3% increase in SDLT. But he backtracked on this in his Budget statement today.

He said: “Companies purchasing residential property will be subject to the higher rates (of stamp duty), including the first purchase of a residential property.”

“Properties purchased for under £40,000, caravans, mobile homes and houseboats will be excluded from the higher rates. Furthermore, small shares in recently inherited properties will not be considered when determining if the higher rates apply.”

The tax surcharge affects anyone buying a residential property in England, Wales and Northern Ireland who on completion owns two or more properties and is not replacing a main residence.