Buying or selling property involves more than just transferring ownership — it requires careful management of legal and financial obligations, including Stamp Duty Land Tax (SDLT). The team at Ives & Co Solicitors work closely with clients to ensure every transaction runs smoothly, managing compliance and paperwork with precision.
A recent HMRC consultation, however, could change how conveyancers interact with tax authorities, potentially creating new obligations and costs for firms and homebuyers alike.
The Issue: A Widening Definition of “Tax Advice”
HMRC’s new proposal would require any organisation that “provides tax advice and interacts with HMRC” to register as a tax agent.
While well-intentioned, this definition could unfairly capture conveyancers whose only tax-related role involves routine SDLT submissions — not complex tax planning.
Most conveyancing firms already:
- Use HMRC’s SDLT calculator or specialist software for filings.
- Refer complex tax relief or exemption cases to qualified tax advisers.
- Operate under existing Solicitors Regulation Authority (SRA) or Council for Licensed Conveyancers (CLC) oversight.
For many firms, the proposed change would mean duplicate registration, extra costs, and new training obligations — without offering tangible benefits for clients.
The Burden on Small Conveyancing Firms
HMRC’s own data shows that over 90% of conveyancing firms are small or medium-sized practices with fewer than 10 fee earners.
These firms are unlikely to have in-house tax specialists, making compliance with new registration rules both costly and unnecessary. Mandatory tax agent registration would also impose:
- 📚 Extra professional development (CPD) requirements
- 💷 Duplicated fees at both firm and individual levels
- ⏳ Delays in processing standard transactions
The Bigger Picture: HMRC’s Own Challenges
HMRC’s SDLT helpline is already under strain — with average caller wait times reaching 25 minutes in mid-2024.
If the tax authority is struggling to handle day-to-day queries, expecting conveyancers to operate as “tax advisers” risks adding confusion rather than clarity.
Suggested Reforms
To protect consumers without overburdening professionals, HMRC could adopt a more balanced approach:
1️⃣ Limit registration to those who explicitly offer tax advisory services or manage clients’ overall tax affairs.
2️⃣ Clarify that law firms and conveyancing practices don’t need duplicate registrations for both firms and individuals.
3️⃣ Exempt SRA-regulated professionals whose SDLT work is already subject to oversight and compliance checks.
Such refinements would strike the right balance — safeguarding consumers while preserving the efficiency and accessibility of the conveyancing process.
A Call for Clarity
As the consultation continues, conveyancers across the country are urging HMRC to refine its approach.
Well-defined registration rules can protect buyers from poor tax advice without penalising regulated legal professionals who already operate under strict compliance frameworks.
