The Conveyancing Association has criticised the proposed HMRC SDLT changes which propose to require conveyancing firms to register as tax advisers, saying they are “disproportionate” and risk “serious unintended consequences for firms and consumers alike”.
In a statement released yesterday, Nicky Heathcote, The Conveyancing Association’s non-executive chair, said the organisation’s position remains clear and called for urgent engagement to reconsider the current approach.
“Conveyancers are already permitted to file SDLT returns as part of routine transactional work, but the proposed label is misleading and suggests a level of tax advice they are neither qualified nor insured to provide,” Heathcote said.
“Introducing that status without full and detailed guidance creates uncertainty, increases liability risk and opens the door to consumer confusion about the scope of the service being delivered.”
Heathcote said The Conveyancing Association is particularly concerned about the operational impact the changes will have on conveyancers.
She explained:
“Even where elements of SDLT work are outsourced, the conveyancer will still be responsible for submitting the return and would still need to register as a ‘tax adviser’ in order to satisfy lender requirements and lodgement at HM Land Registry.
“In practice, firms will have little choice but to comply. That means additional compliance obligations, potential professional indemnity exposure and further administrative pressure, on top of existing AML and identity requirements which have already added cost and delay to the process.
“Without clear rules and a proportionate framework, this risks placing further strain on transaction times and on firms that are already operating within a tightly regulated environment.”
The Conveyancing Association is calling for urgent engagement between HMRC, the Treasury and MHCLG to reconsider the current approach and agree a workable alternative.
“A standardised, HMRC-endorsed SDLT questionnaire, combined with a clear requirement for independent tax advice in genuinely complex cases, would provide stronger safeguards without mislabelling conveyancers or increasing unnecessary risk,” Heathcote suggested.
“Our objective is to protect consumers, maintain market stability and ensure accurate tax reporting, without creating avoidable disruption across the home moving process.”
