HMRC SDLT guidance highlights growing need for specialist tax advice, says The Conveyancing Association
Nicky Heathcote said: "It is important consumers can access appropriate advice when complex SDLT issues arise and conveyancing firms are clear about the scope of the services they provide.”
The Conveyancing Association (CA) has welcomed new HMRC guidance on registration for Stamp Duty Land Tax (SDLT) returns but warned the rules highlight how complex the tax has become.
The guidance confirms conveyancing firms must register as tax advisers to submit SDLT returns and make payments for clients.
The CA said this does not mean conveyancers are qualified, regulated or insured to give tax advice.
The association added that issues like trusts, company ownership, multiple buyers, mixed-use property, first-time buyer (FTB) status and higher-rate charges can all make a difference and often need specialist knowledge.
Firms are now considering how they handle SDLT work, including if they need outside support, refer complex cases, or develop in-house expertise, according to its findings.
The CA noted that each approach brings its own risks and responsibilities, and firms must make sure clients understand what services are being provided.
Responsibility for submitting Stamp Duty Land Tax returns still sits with the conveyancer, but the Conveyancing Association said firms are looking at different ways to manage compliance and reduce risk as the tax system gets more complicated.
Nicky Heathcote, non-executive chair at the CA, said: “The publication of HMRC’s guidance provides clarity on the practical steps firms will need to take in order to continue submitting SDLT returns.
“However, it also highlights an important distinction which we have been raising for some time.
“Registration as a tax adviser for HMRC purposes should not be confused with the provision of tax advice.”
Heathcote added: “Conveyancers are required to register in order to fulfil their role in the transaction registration process, but that does not mean they are qualified, regulated or insured to provide detailed tax advice to clients.
“SDLT has become increasingly complex. There are now dozens of reliefs and exemptions, together with a wide range of ownership scenarios and purchasing structures that can significantly affect tax liabilities.
“In some cases, determining the correct SDLT position requires highly specialist knowledge and expertise.”
She said: “Many firms are now asking difficult questions about how they manage SDLT-related matters.
“Some may decide specialist support is appropriate for every case, others may choose to develop internal expertise, while some may seek specialist input only where transactions become more complex.
“There is no simple answer and each approach brings its own risks.”
She added: “Even identifying whether a matter is straightforward or complex can raise important questions.
“Ultimately, conveyancers remain responsible for submitting the SDLT return and firms will need to consider carefully whether they have the expertise, processes and protections in place to support the approach they adopt.
“There is also a consumer education piece here. Firms should be clear about the services they provide and the circumstances in which independent SDLT advice may be required.”
She said: “The term ‘tax adviser’ clearly carries certain expectations and it is important clients understand the difference between administrative submission of SDLT returns and the provision of specialist tax advice.
“As the tax regime continues to evolve, it is important consumers can access appropriate advice when complex SDLT issues arise and conveyancing firms are clear about the scope of the services they provide.”
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