Tax is complicated and making sure you pay the right amount can be challenging – just ask MP Angela Raynor or indeed former Chancellor of the Exchequer Nadhim Zahawi.
For as long as I can remember solicitors and conveyancers have been the conduit for paying Stamp Duty Land Tax (SDLT) to HMRC as a part of their professional service to their customers – albeit considered as an ancillary aspect.
The current regime has (as far as I know) worked well and whilst there has no doubt been abuse of the ‘self-regulation’ aspect of the process (clients complete declarations regarding their status as first-timers / second movers) I can’t think of any national scandals involving conveyancers deliberately falsifying SDLT Returns to benefit their customers paying less or no stamp duty.
REGISTERED TAX ADVISERS
Regardless of this from rom May 2026 all solicitors and licensed conveyancers will need to register as tax advisers if they wish to continue to assist their customers to complete SDLT Returns and submit the Returns to the Revenue.
Under this new regime, any individual or organisation that “assists others with their tax affairs” for payment must register before interacting with HMRC on behalf of clients.
To register, both the business entity and its “relevant individuals” (senior managers, directors, or partners) must meet specific eligibility conditions.
CORE ELIGIBILITY REQUIREMENTS
- Clean Tax Record: Neither the business nor its relevant individuals can have outstanding tax returns or unpaid tax, unless a formal Time to Pay is in place and being followed.
- Anti-Money Laundering (AML) Supervision: The business must be registered with an AML Supervisory Body (e.g. HMRC or a professional body like ICAEW, ACCA or CIOT).
- Clean Criminal & Professional Record: Applicants must not have:
- Unspent convictions for tax-related offences or fraud.
- Current director disqualifications.
- Active insolvency proceedings.
- Previous bans or suspensions from HMRC registration.
- Adherence to Standards: Advisers must comply with the HMRC Standards for Agents which sets expectations for professional conduct and competence.
Now HMRC does not intend to charge a fee for the initial registration or to remain on the new mandatory tax adviser register but there are likely to be indirect costs to meet the mandatory eligibility conditions.
FUTURE COSTS
Call me a cynic but whilst this registration process is expected to be free I can see a time in the not-too-distant future where a subscription regime is introduced to cover the costs of HMRC for administrating the tax register.
As far as solicitors and licensed conveyancers are concerned this is yet another unwelcome administrative burden and cost which they will need to take on board if they wish to continue offering the completion of SDLT Returns for their customers.
The reality is that most will be likely to continue to offer this as part of their conveyancing proposition.
There are of course third party companies which offer this service to our customers but I suspect many of us will wish to continue to keep SDLT submission in house – it’s part of the holistic service which we offer to our customers and seen as an integral part of our conveyancing proposition.
Outsourcing it involves a diminution in the overall proposition and of course the extra costs which customers will have to pay for that service.
INCREASED FEES
The current regime already costs customers – typically solicitors and conveyancers charge £50 to £75 for submission of the SDLT Return.
But this fee is likely to increase substantially to cover the costs associated with the new mandatory system.
Key personnel in firms will need to be registered individually and there will be an annual renewal costs associated – no doubt including training requirements and associated costs involved in maintaining internal records within firms.
UNWELCOME AND UNNECESSARY
This feels to me as if firms are going to need to realistically review their fees in line with the new regime and it would not surprise me to see typical charges for SDLT services rising to £150-£200 per transaction.
In itself not a huge figure when compared with the overall cost of a conveyancing transaction but when added to the cost of SDLT itself it is an unwelcome and some would say an unnecessary addition to the cost of buying or moving home.
The Conservatives have recently pledged to abolish SDLT on all primary residences so we may not have long to wait until all the chairs on deck are moved again.
And whilst I have never voted Conservative I suspect such a pledge could be an attractive vote winner in the next General Election – assuming Labour even remain a credible alternative Government by then.
