By Legal Futures Associate Miller Insurance [1]
In recognition of the evolving nature of this topic, and the need to share up-to-date and helpful insight, we’re grateful for the feedback shared with us in response to our previous release considering the impact on law firms of the HMRC guidance regarding the new registration requirements for tax advisers (published in February 2026).
Our initial article explained that the guidance is clear: if you interact with HMRC about another person’s tax affairs and receive payment for doing so, you are considered a tax adviser. This view has not changed and law firms who submit any tax-related documents on behalf of clients (including SDLT returns) must meet the requirements for registration of tax advisers by the 18 May 2026 deadline.
However, insight sharing and guidance from John Shallcross (a stamp duty land tax specialist at Blake Morgan) prompted us to revisit and update our article.
Receiving payments
John made us aware that the terminology to “receive payment” for assisting with the land transaction return is a bit misleading and that he has seen “questions about trying to escape registration by not charging a separate fee for preparing and filing returns”, which does not work. John explained that the test is formulated in terms of whether the assistance is “in the course of a business”.
Criteria for registration
To comply with the registration requirements, your practice will need to do the following.
- Evidence that it is supervised for anti-money laundering (AML) purposes.
- Be up to date with tax returns and tax payments (including where a payment plan is in place).
- Be solvent.
- Have no unspent relevant convictions for fraud or tax offences.
- Not be suspended or permanently banned from registering with HMRC, or have been the subject of an HMRC decision to refuse to deal with the firm.
Relevant individuals (meaning those who have a significant role in managing the “tax adviser activities”) must meet broadly similar requirements. This includes not being disqualified from acting as a company director, either in the UK or overseas. Notably, if your practice has five or fewer officers (Partners, Directors, or Members), then all will have to meet these requirements.
Practical implications for firms
In our view, the formal registration as a “tax adviser” might make clients expect a higher level of tax advice in relation to a conveyancing transaction. Therefore, firms should ensure that their client care letters and terms of business clearly set out the scope of what they are doing, and not doing, in relation to SDLT returns and where specialist tax advice should be sought. This information should be brought clearly to the client’s attention both at the outset of the retainer and again at the point of sending the SDLT return to the client for approval.
Considering the “tax adviser” designation, it is now even more important for firms to have a detailed understanding of what constitutes a ‘complex’ property transaction from an SDLT perspective.
The changes may mean that more firms consider referring clients to specialist tax advisers in cases involving any potential complexity. Where clients do not accept such recommendations, firms will need to determine their own appetite for continuing to act. Essentially, having to decide whether to cease to act, or to provide very clear, well documented advice (both verbally and in writing) to clients about the risks.
If a firm chooses to continue to act despite having given clear risk warnings, we envisage the risk of a claim if SDLT is miscalculated.
If the error results in overpayment of tax, there can be difficulties in recovering excess payments from HMRC, particularly after a period of time has elapsed, potentially increasing the risk of claims. Conversely, if the error results in an underpayment of SDLT, there may be an argument that the client is not prejudiced and has no greater liability that they would have had if the tax had been correctly calculated at the outset, unless fines and penalties are applied.
Firms must therefore consider their approach with great care, ensuring that clients are properly advised regarding all relevant risks.
Regulators positions
The HMRC guidance was published on 17 February 2026 and at the time of writing, there has been limited opportunity for the regulator or the insurers to consider their positions.
Council for Licensed Conveyancers (CLC) position
“CLC lawyers are not tax advisors and the CLC does not permit those it regulates to give tax advice under their CLC licence. Notwithstanding this, HMRC considers CLC lawyers to fall within the definition of tax advisor set out in the Finance Bill, and as such requires CLC lawyers to obtain an agent service account, i.e. to register with HMRC.”
The CLC newsletter on 26 February 2026 explains that:
“We are disappointed by the Government’s decision to require any lawyer that interacts with HMRC on behalf of clients to register as ‘tax advisers’.
Our Chair, Dame Janet Paraskeva, has written to James Murray MP, Chief Secretary to the Treasury [2] outlining our concerns.
Along with others, CLC lawyers will be expected to register for an agent services account by 18 May 2026.
We will be meeting with HMRC shortly to discuss the impact of this new requirement for CLC lawyers and will publish guidance.”
Society of Licensed Conveyancers (SLC) position
In their article published 10 February 2026, Licensed Conveyancers Should Not Be Treated as Tax Advisers, warns the Society of Licensed Conveyancers | The Society Of Licensed Conveyancers [3], the SLC raise serious concerns about the proposal.
Simon Law, Chair of the Society of Licensed Conveyancers, said:
“Licensed Conveyancers are not tax advisers and are not permitted to provide tax advice. Requiring them to register as tax advisers simply because they submit SDLT returns on behalf of clients is misleading, unnecessary, and fundamentally misunderstands their role.”
Between publication of our first article and this revised version, a joint statement was issued by the SLC and Bold Legal Group Mandatory HMRC Registration for Conveyancers as Tax Advisers – Joint statement from SLC and BLG | The Society Of Licensed Conveyancers [4]
Four practical steps to help you prepare
- Ensure that your practice meets the criteria for a successful registration. Review the HMRC guidance (Check if you meet HMRC’s conditions to register as a tax adviser – GOV.UK [5]) and identify the relevant individuals in your firm for the purposes of tax.
- Evaluate the triggers and warning signs that flag a complex transaction for SDLT purposes, and build these into your onboarding processes.
- Review your policies, letters of engagement, terms of business and charging structures in light of the changes to tax adviser regulation.
- Provide training for conveyancing staff regarding the new regulatory environment, and your firm’s approach to dealing with SDLT returns, identifying complex SDLT transactions, etc.
We recognise that this topic is attracting much discussion and that the above content could be overtaken by changes before the deadline day of 18 May 2026. On 19 March 2026, the Law Society Gazette speculated that conveyancing tax adviser registration “could be deferred”, therefore we encourage readers to keep themselves informed with guidance from the Regulators.
Acknowledgements
With thanks to the following contributors to this article:
- Stephen Ward & Claire Richardson – Council of Licensed Conveyancers
- Simon Law – Society of Licensed Conveyancers
- Sam Moore – Caytons
- John Shallcross – Blake Morgan
Find out more: Miller’s CLC solutions [6]