A conveyancing body says it’s vital to state that convencers are not formal advisers about Stamp Duty liability.
HM Revenue and Customs (HMRC) has issued new guidance for anyone submitting Stamp Duty Land Tax (SDLT) returns on property transactions.
The guidance confirms conveyancing firms need to register as tax advisers to obtain credentials required to file SDLT returns and make payments on behalf of clients.
The issue of Stamp Duty liability shot to prominence last year over the Angela Rayner case, where a complex property purchase arrangement ended in confusion over the former Deputy Prime Minister’s SDLT liability.
However a trade body – the Conveyancing Association (CA) – now says this HMRC guidance shouldn’t be interpreted as meaning conveyancers are qualified, regulated or insured to provide tax advice.
The CA says conveyancing firms now face tough challenges when assessing SDLT liabilities, reliefs and exemptions, particularly as the tax regime becomes more complicated year after year.
It says there are over 30 separate SDLT reliefs and exemptions, alongside a growing range of ownership structures and circumstances that can affect tax treatment.
The CA says questions involving trusts, company ownership, multiple purchasers, mixed-use property, first-time buyer eligibility and higher-rate charges can all have a significant impact on the SDLT payable and often require specialist expertise to assess correctly.
The CA believes this complexity is prompting many firms to review whether they seek specialist advice, or develop in-house expertise capable of dealing with SDLT-related issues.
The CA says: “While responsibility for submitting SDLT returns remains with the conveyancer, the CA noted firms continue to explore a variety of ways to manage SDLT-related risk and compliance obligations, particularly as the complexity of the tax regime increases.
An association spokesperson says: “Many firms are now asking difficult questions about how they manage SDLT-related matters.
“… There is no simple answer and each approach brings its own risks. Even identifying whether a matter is straightforward or complex can raise important questions.
“Ultimately, conveyancers remain responsible for submitting the SDLT return and firms will need to consider carefully whether they have the expertise, processes and protections in place to support the approach they adopt.”
The full HMRC ‘Mandatory Tax Adviser Registration’ Guidance is here: https://www.gov.uk/hmrc-internal-manuals/mandatory-tax-adviser-registration.
