HMRC’s recent consultation proposes that any organisation which ‘provides tax advice and interacts with HMRC’ must register as a tax agent. But is this drawing too wide a net and capturing conveyancers whose role is limited to SDLT filing?
Conveyancers already manage various compliance tasks, including anti money laundering checks, environmental and title searches, trust reporting and client due diligence. Most practices rely on HMRC’s SDLT calculator or specialist software for routine filings and refer complex relief claims to qualified tax experts. Mandatory registration would impose continuing professional development obligations and duplicate fees at both firm and individual level, increasing cost and delay without clear benefit for home buyers.
Recent HMRC data reveals record demand on its SDLT helpline, with public callers waiting an average of 25 minutes in June 2024 and many calls abandoned, underscoring the complexity of queries about reliefs and surcharges. If everyday enquiries pose such challenges, expecting conveyancers to qualify as registered tax agents seems disproportionate.
HMRC data indicates that over 90% of conveyancing practices are small or medium sized firms with fewer than 10 fee earners. These firms are unlikely to have in-house tax specialists, meaning the consultation’s broad definition could affect thousands of professionals whose primary expertise lies in property transactions rather than wider tax planning.
To protect consumers without overburdening the profession HMRC could consider:
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Limiting registration to those who explicitly hold themselves out as tax advisers or routinely manage clients’ overall tax affairs.
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Clarifying the definition of organisation so that law firms and conveyancing practices avoid duplicate registrations at firm and individual level.
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Creating an exemption for Solicitors Regulation Authority regulated professionals whose SDLT work already falls under existing oversight.
Well-crafted registration rules can protect home buyers from substandard advice while preserving conveyancers’ capacity to deliver efficient property transactions. Your views on this consultation are welcome in the comments below.
Ryan Hannah is the managing director of Compass
