Key Points for Conveyancers
- From May 2026, conveyancers filing Stamp Duty Land Tax (SDLT) returns must register with HMRC as tax advisers.
- Unregistered or suspended interaction with HMRC may trigger penalties of £5,000–£10,000 per breach.
- SDLT involves complex tax analysis, not just administrative filing.
- Specialist SDLT advice can reduce compliance and indemnity risk.
Overview of the New HMRC SDLT Tax Adviser Requirements
HMRC has confirmed that conveyancers who submit SDLT returns on behalf of their clients will be required to register as tax advisers under legislation being introduced in the Finance Bill 2025–26.
The new requirement is set to come into effect from May 2026, with a transitional period of at least three months.
The new rules are detailed in the draft Finance (No. 2) Bill Part 7 and Schedules 19 and 20.
What the Finance Bill 2025–26 Means for Conveyancers Filing SDLT Returns
Under the proposed legislation, an adviser will be prohibited from interacting with HMRC unless they are registered with HMRC, or a very limited exemption applies.
The legislation also provides for:
- Penalties where an adviser continues to act while unregistered or suspended.
- Suspension of registration where minimum expected standards are not met.
What Counts as an “Interaction” with HMRC?
The draft legislation defines an “interaction” with HMRC very broadly. It includes:
- contacting HMRC by telephone, post or email;
- sending a message to HMRC through a website or internet portal;
- filing a return, claim, notice or other document with HMRC (whether electronically or otherwise);
- communicating with HMRC in any other way.
As a result, conveyancers who file SDLT returns are clearly within scope of the new tax adviser registration requirement.
Are Conveyancers Exempt from SDLT Tax Adviser Registration?
The exemptions set out in the draft legislation are extremely limited.
A conveyancer who only files SDLT returns on behalf of clients will not be exempt and will still be required to register as a tax adviser with HMRC.
Key Risks and Penalties for Non-Compliance
The draft legislation identifies several ways in which the new rules may be breached, including:
- Continuing to interact with HMRC whilst unregistered;
- Continuing to interact with HMRC whilst suspended;
- Failing to notify clients of a suspension.
Any breach may result in penalties for:
- Individual conveyancers;
- Managers;
- Directors or partners of the firm.
Penalties start at £5,000, rising to £10,000 per breach, and may apply per person involved. In some cases, total penalties could run into the hundreds of thousands of pounds.
Why SDLT Is Not “Just Form-Filling”
It is often suggested that SDLT is largely administrative and that filing a return does not amount to providing tax advice. In practice, SDLT is a highly complex and specialist area of taxation.
Many transactions fall outside the standard rules, particularly where:
- Reliefs are claimed.
- Higher rates apply.
- Mixed-use property is involved.
- Other non-standard issues arise.
The scope for differing interpretations can be significant, as highlighted by recent HMRC activity and media coverage.
Increasing Reliance on AI and Automated SDLT Advice
Clients are increasingly proactive in seeking ways to reduce SDLT liabilities. It is now common for purchasers to arrive with information generated by AI tools such as ChatGPT, often presented as authoritative without a full understanding of the underlying legislation or risk.
At the same time, a growing number of technology-led providers are offering SDLT assessments or return-filing services.
What remains unclear is:
- How these providers will be treated under the new tax adviser registration regime.
- Where liability will rest if an incorrect tax position is taken.
- Whether conveyancers have a duty to ensure advice meets minimum standards and is provided by a suitably qualified expert.
These unanswered questions are critical when assessing a firm’s risk exposure.
Professional Indemnity Risk and SDLT Compliance
It is not yet clear how professional indemnity insurers will respond to the new tax adviser registration requirements or the increased financial risk they create.
What is clear is that where the SDLT position is not straightforward, the potential exposure for conveyancing firms is significant.
As responsibility for tax advice increases, firms are reviewing how best to manage risk, not by stepping outside their expertise, but by ensuring appropriate specialist SDLT support is in place.
How Relatus Supports Conveyancers with SDLT Compliance
At Relatus, SDLT is our sole focus.
Our advisers are members of the Association of Taxation Technicians, non-practising solicitors, and have over 10 years’ experience advising specifically on SDLT, including a proven track record in Tribunal proceedings against HMRC.
We support conveyancing firms by providing independent, specialist SDLT advice that helps firms:
- Meet regulatory obligations.
- Manage SDLT risk.
- Ensure the correct amount of tax is paid at the outset.
Our SDLT Services for Conveyancing Firms
Our services include:
- SDLT check service, reviewing all relevant facts and applying the appropriate legislation and HMRC guidance.
- SDLT1 approval service, providing confidence prior to submission.
- Written SDLT tax opinions for complex or non-standard transactions, with full legislative and case law support.
- HMRC compliance check support where an SDLT return or amendment is under review.
Importantly, we do not use AI or automated systems. Every matter is reviewed by a human specialist with up-to-date knowledge of legislation, HMRC practice, and case law.
Preparing for HMRC Tax Adviser Registration
As conveyancers prepare for tax adviser registration, access to trusted specialist SDLT advice has never been more important.
Whether firms choose to:
- Continue filing SDLT returns;
- Seek independent review, or;
- Outsource complex SDLT matters.
Having the right expertise in place will be key to managing compliance and protecting against future challenge.
Details of our SDLT services and fees can be found here.
