SDLT is a familiar – and until recently, consistent – part of post-completion work. But recently announced changes under HMRC’s new mandatory registration regime,there is a fair degree of uncertainty around SDLT returns and payments for clients, and how they might now fall within the scope of tax adviser registration.
That does not mean conveyancers are being asked to give tax advice. It does mean that firms need to understand how the rules apply to the practical work they already do.
The issue comes from the breadth of Section 224 of the Finance Act 2026 and the HMRC guidance that followed. The definition covers anyone who helps others with their tax affairs in the course of business, or who interacts with HMRC on a client’s behalf. Submitting a return counts. Processing a payment counts. Even making a phone call to HMRC about a client matter may count.
This creates a difficult balance for firms. Your engagement letters may already make clear that you do not provide tax advice, and your professional licence may not allow you to do so. At the same time, the way SDLT returns and payments are handled could still bring your firm into scope.
The priority now is to check whether your firm needs to register, identify the right people, and make sure the process is completed in good time.
Professional bodies, including the CLC and the Law Society, argued that conveyancers should sit outside the regime. Their concern is easy to understand. Conveyancers are not permitted to give tax advice, and including them in a tax adviser registration framework could create confusion for clients.
HMRC’s position remains that the rules apply to certain activities, not simply to job titles.
Its focus is on knowing who is interacting with HMRC on behalf of clients and making sure those firms meet minimum standards. Because SDLT submissions and payments involve that interaction, conveyancing firms may be caught by the regime even where no tax advice is being given.
For firms, the practical takeaway is simple – work from the guidance as it stands and do not leave registration checks until the last minute.
The registration process is not complicated, but it does need some preparation. The key task is identifying your firm’s “relevant individuals”. These are usually people in senior management or compliance roles who have decision-making authority over how tax-related activities are managed, such as a Head of Legal Practice, Head of Finance, MLRO or post-completion team leader. You are not expected to register everyone who touches an SDLT file.
For firms with fewer than six people in these roles, the guidance suggests you will likely need to register all of them.
Two practical points that are easy to overlook:
Relevant individuals must be up to date on their own personal tax payments to HMRC. This is a registration condition, not a formality.
Check whether your firm already has an Agent Services Account. This is a specific HMRC account type, not the same as your standard online filing login. Try logging in with your existing HMRC credentials. If they work, you are already set up. If you are prompted to register, follow the process.
The CLC’s advisory note on registration gives more detail on who the CLC considers to be relevant individuals within a CLC-regulated practice. It is worth reading if the CLC is your regulator.
The deadline is 18 August 2026. Giving yourself time now will make it easier to check the right details, resolve account access issues and avoid a last-minute rush.
Non-compliance can lead to financial penalties of £5,000 to £10,000, depending on the circumstances. For conveyancing firms, the wider concern is the possible impact on live matters if HMRC restricts a firm’s ability to interact with it.
If that happened, firms could face very practical problems:
These are the kinds of issues that can quickly affect clients, lenders and internal teams. The best protection is to treat registration as part of your operational readiness, rather than as a standalone admin task.
There has been genuine confusion about whether outsourcing SDLT activity to a third-party provider removes the obligation to register. In most cases, it is unlikely to be that simple.
First, the definition of interaction with HMRC is broad enough that many firms may retain some direct involvement even if they outsource calculation or submission. Second, many firms interact with HMRC for reasons beyond SDLT, including commercial property matters, probate or business tax queries. Outsourcing one task may not remove the wider relationship.
The Law Society’s guidance is clear that paying SDLT to HMRC on a client’s behalf almost certainly brings a firm within scope, regardless of who calculated the return. More broadly, outsourcing may transfer a task, but it does not remove the firm’s responsibility for the matter.
If you outsource SDLT work, particularly for more complex cases, your compliance framework should still cover oversight, documentation and accountability. The firm remains responsible for making sure the matter is handled properly.
There is a practical upside to this exercise.
Registration may be an administrative requirement, but preparing for it gives firms a useful reason to look again at how SDLT work moves through the business. Who calculates the return? Who checks it? Who submits it? Who handles the payment? And Who speaks to HMRC if there is a query?
Firms may find that SDLT involves more people and more handovers than expected. Understanding that journey can help improve compliance, reduce risk and give teams greater clarity around who is responsible for each step.
It is also a sensible time to take stock in three key areas:
Client engagement letters. The wording of your client letters may already explain that you are not a tax adviser and that clients should seek independent advice where needed. That remains important, but it may now need to sit alongside an acknowledgement that your firm is registered under the new regime. The two points can work together if they are explained clearly.
Escalation points. When should a transaction be flagged as too complex for standard processing? Second properties, additional dwellings, mixed-use purchases, commercial elements and clients with overseas property interests can all create SDLT complexity. If specialist input is likely to be needed, the trigger should be clear, understood by the team and recorded on the file.
Client onboarding questions. The best time to identify SDLT complexity is at the start of the matter, not just before completion. Stronger initial questions at the onboarding stage can help surface issues early enough for the firm and client to decide what support is needed.
The CLC has been clear that registration as a tax adviser does not create new substantive duties. Conveyancers are not being asked to give tax advice. They are being asked to register with HMRC where their work brings them within scope, and to keep the records and controls needed to support that registration.
The terminology is not ideal, and it is understandable that the profession has challenged it. But unless HMRC’s position changes, firms need to respond to the rules as they are and make sure their SDLT processes are clear and documented.
The guidance is now available, the registration process is open, and the deadline is 18 August 2026.
If your firm handles SDLT submissions or payments and has not yet started preparing, now is the time to check whether you are in scope, identify your relevant individuals and review how SDLT work is managed from instruction through to post-completion.
Note: This article draws on a recent panel discussion with Stephen Ward, Director of Strategy and External Relations at the CLC, and Sarah Keegan, Co-founder of the CS Partnership. It is intended as commentary and practical guidance, not legal or tax advice.
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