The Conveyancing Association has welcomed new HMRC guidance on Stamp Duty Land Tax registration requirements but warned that increasing complexity within the tax regime is creating growing challenges for conveyancing firms.
The Conveyancing Association (CA) said the publication of HMRC guidance on registration requirements for firms submitting Stamp Duty Land Tax (SDLT) returns provides greater clarity on the practical steps conveyancers must take in order to continue filing returns and making payments on behalf of clients.
However, the trade body stressed that registration as a tax adviser for HMRC purposes should not be interpreted as meaning conveyancers are qualified, regulated or insured to provide specialist tax advice.
The guidance confirms that conveyancing firms will need to register as tax advisers in order to obtain the credentials necessary to submit SDLT returns and payments for clients.
The CA said the issue comes at a time when SDLT has become increasingly complex, with more than 30 separate reliefs and exemptions now available, alongside a growing range of ownership structures and purchasing circumstances that can affect tax treatment.
According to the Association, matters involving trusts, company ownership, multiple purchasers, mixed-use property transactions, first-time-buyer relief and higher-rate charges can all have a significant impact on SDLT liabilities and may require specialist expertise to assess correctly.
The CA believes many firms are now reviewing how they manage SDLT-related matters and whether they possess the internal expertise, systems and processes required to deal with all scenarios they encounter.
Firms across the sector are considering different approaches, including obtaining specialist support on all cases, referring more complex matters to SDLT specialists, or developing in-house expertise capable of dealing with tax-related issues.
The Association said there is no single solution and warned that each approach carries its own risks and responsibilities. It added that firms must undertake appropriate due diligence and ensure consumers understand the services being provided.
While conveyancers remain responsible for submitting SDLT returns, the CA said firms continue to explore ways of managing SDLT-related risk and compliance obligations as the tax regime evolves.
Nicky Heathcote, non-executive chair of the Conveyancing Association, 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. 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.
“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. 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. 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.”
The full HMRC Mandatory Tax Adviser Registration guidance covers both the scope and requirements for registration, as well as checks against registration conditions.
