HMRC Regulatory Update: From May 2026, conveyancers filing SDLT returns must register as tax advisers.
HMRC Regulatory Update: From May 2026, conveyancers filing SDLT returns must register as tax advisers.
HMRC Has Confirmed: Conveyancers Filing SDLT Returns Must Register as Tax Advisers
From May 2026, the Finance Bill 2025-26 requires anyone filing SDLT returns to register with HMRC as a tax adviser and meet minimum standards. Non-compliance penalties start at £5,000.
This changes everything for conveyancing practices.
The Headline Facts
| What's Changing | When | Impact |
|---|---|---|
| Mandatory registration | May 2026 | All conveyancers filing SDLT returns must register with HMRC |
| Minimum standards | Ongoing | You and your senior managers must meet HMRC's eligibility conditions |
| Enhanced penalties | From April 2026 | £5,000–£10,000 per breach, up to £1M for facilitating non-compliance |
| New liability exposure | Immediate | "Sanctionable conduct" replaces "dishonest conduct" — much lower threshold |
| Publication powers | From April 2026 | HMRC can publish names of advisers subject to sanctions |
What HMRC Said
"The requirement to register will apply to all tax advisers who interact with HMRC on behalf of clients. This applies regardless of whether the organisation views itself as a tax adviser. Filing tax returns for a taxpayer, including SDLT returns, is defined as tax advice and so conveyancers who interact with HMRC must register to continue to do so."
— HMRC Response to Bold Legal Group, December 2024
The Law Society had warned that the proposed legislation was "so broad that many legal professionals who do not hold themselves out as tax specialists, or who are not in any real sense tax advisers, would be caught."
HMRC proceeded anyway. Conveyancers are now officially tax advisers in the eyes of HMRC.
Finance Bill Committee confirmation (February 2026)
During scrutiny of the Finance Bill, the government explicitly confirmed that conveyancers fall within scope. Dan Tomlinson, exchequer secretary to the Treasury, told the committee:
"...anyone paid to interact with HMRC on behalf of clients – for example, by submitting tax returns or other information to HMRC – will fall within scope of the requirement to register."
He went on to name the professions required to register, including "conveyancers who interact on behalf of taxpayers for stamp duty land tax." These remarks remove any remaining ambiguity about whether conveyancers submitting SDLT returns are captured by the legislation.
The Society of Licensed Conveyancers (SLC) has raised serious concerns about the proposal and has written to the chancellor urging the government to reconsider and to exclude licensed conveyancers from scope.
Three Critical Changes You Need to Understand
You Must Register or You Cannot File
From May 2026, unregistered advisers cannot interact with HMRC on behalf of clients. This means:
- ✗You cannot file SDLT returns
- ✗You cannot correspond with HMRC about client tax matters
- ✗You cannot represent clients in SDLT enquiries
If you fail to register by the deadline, you cannot complete conveyancing transactions that involve SDLT returns.
The Eligibility Conditions Are Personal
You and every "senior manager" in your firm must meet HMRC's eligibility conditions:
Condition A — Tax Compliance:
- • No outstanding tax returns
- • No unpaid tax amounts
- • No insolvency proceedings
Condition B — Professional Standards:
- • Meet HMRC's "Standards for Agents"
- • Maintain ongoing compliance
Condition C — AML Registration:
- • Registered with supervisory authority
One partner with a compliance issue could bar your entire firm from registration.
The Penalty Threshold Has Collapsed
The Finance Bill 2025-26 replaces "dishonest conduct" with "sanctionable conduct" — defined as acting "with the intention of bringing about a loss of tax revenue."
HMRC no longer needs to prove dishonesty. The ICAEW warns this could apply to:
- • Legitimate technical disagreements
- • Good-faith errors in complex calculations
- • Cases where both parties act in good faith but disagree
Penalties calculated by reference to potential lost revenue — capped at £1M for first breach.
You Have Three Options
You've been filing SDLT returns as an incidental part of conveyancing. Now HMRC says that makes you a tax adviser. How do you respond?
Refer SDLT to Specialists
Refer clients to specialist tax advisers for all SDLT matters.
- ✗Add £500–£1,500 to every transaction
- ✗Lose clients to competitors
- ✗Watch conveyancing fees compress further
Register and Carry the Full Risk
Meet the eligibility conditions. Maintain compliance. Hope your SDLT calculations are perfect.
- ✗Personal liability for all senior managers
- ✗Enhanced penalties when errors occur
- ✗Watch PI premiums spike
Partner with SDLT Check
Transfer the SDLT filing responsibility — and the liability — to a specialist provider.
- ✓We handle HMRC registration and compliance
- ✓We carry "sanctionable conduct" liability
- ✓£5M indemnity covers all errors
- ✓Your practice continues unchanged
Timeline: What Happens When
You have until May 2026. But the firms preparing now will have the smoothest transition.
Get Your Readiness Checklist →Next Steps
Understand What This Means for You
Every practice is different. See the specific implications for your situation.
Read More →See How SDLT Check Provides Protection
Our solution isn't just accuracy — it's complete regulatory compliance and liability transfer.
Learn More →Get Your Registration Readiness Checklist
Whether you self-register or partner with us, assess your current position.
Download Checklist →🕐 30-minute consultation | 📋 Firm-specific advice | ✓ No obligation
Questions?
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