The Conveyancing Association has criticised HMRC’s proposed changes to Stamp Duty Land Tax (SDLT) rules warning that requiring conveyancing firms to register as ‘tax advisers’ could create confusion, increase liability and add further pressure to an already stretched home moving process.

Mortgage Soup revealed last month how conveyancing fees are set to rise from May 2026 as solicitors and licensed conveyancers will be required to register as tax advisers to continue submitting Stamp Duty Land Tax (SDLT) returns on behalf of clients.

Now the Conveyancing Association has finally come out and said the plans, which would compel firms submitting SDLT returns to register under HMRC’s tax adviser framework, are disproportionate and risk unintended consequences for both practitioners and consumers.

Under the proposals, registration would be triggered by interaction with HMRC rather than the giving of tax advice.

However, the CA argues that the label itself is problematic and may misrepresent the role conveyancers play in routine property transactions.

The Association also raised concerns about operational impact, noting that even where SDLT work is outsourced, conveyancers would still be responsible for submission and would therefore still need to register in order to meet lender and HM Land Registry requirements.

SERIOUS UNINTENDED CONSEQUENCES

Nicky Heathcote, non-executive chair of The Conveyancing Association, said: “The Conveyancing Association has been closely reviewing HMRC’s proposed SDLT changes, which would require conveyancing firms to register as ‘tax advisers’ in order to submit SDLT returns.

“We recognise that, under HMRC’s definition, registration is based on interaction with HMRC rather than the giving of tax advice, and there is no regulatory barrier to conveyancers registering. However, our position remains clear.

“The proposal is disproportionate and risks serious unintended consequences for firms and consumers alike.”

MISLEADING LABEL

Conveyancers are already permitted to file SDLT returns as part of routine transactional work but the Conveyancing Association warned that the proposed label is misleading and suggests a level of tax advice they are neither qualified nor insured to provide.

Heathcote added: “Introducing that status without full and detailed guidance creates uncertainty, increases liability risk and opens the door to consumer confusion about the scope of the service being delivered.

“We are particularly concerned about the operational impact. Even where elements of SDLT work are outsourced, the conveyancer will still be responsible for submitting the return and would still need to register as a ‘tax adviser’ in order to satisfy lender requirements and lodgement at HM Land Registry.”

MORE COMPLIANCE

And she said: “In practice, firms will have little choice but to comply. That means additional compliance obligations, potential professional indemnity exposure and further administrative pressure, on top of existing AML and identity requirements which have already added cost and delay to the process.

“Without clear rules and a proportionate framework, this risks placing further strain on transaction times and on firms that are already operating within a tightly regulated environment.

“The CA is therefore calling for urgent engagement between HMRC, the Treasury and MHCLG to reconsider the current approach and agree a workable alternative. A standardised, HMRC-endorsed SDLT questionnaire, combined with a clear requirement for independent tax advice in genuinely complex cases, would provide stronger safeguards without mislabelling conveyancers or increasing unnecessary risk.

“Our objective is to protect consumers, maintain market stability and ensure accurate tax reporting, without creating avoidable disruption across the home moving process.”