The recent resignation of Deputy Prime Minister Angela Rayner has once again shone a spotlight on the complexity and risk of Stamp Duty Land Tax (SDLT).

Rayner publicly admitted that she underpaid SDLT on the £800,000 flat she bought in Hove.

In her own statement, she explained that her legal advice “did not properly take account” of her circumstances, which involved both a divorce and a trust established for her son with special educational needs.

Having since taken specialist tax advice, she now faces a significantly higher SDLT liability.

Why this matters

For property lawyers, this case is a stark reminder of how easily SDLT can become a regulatory minefield—particularly where trusts, divorce or other family arrangements are involved.

When solicitors attempt to “work out” what tax is due, they can be deemed to have given tax advice, exposing themselves to professional and insurance risks.

Amanda Perrotton, Senior Partner at Bell Howley Perrotton, comments:

“Whether Angela Rayner stays or goes, ultimately the regulatory burden—along with many other intolerably high burdens—falls on the underpaid and overworked adviser.

The risk of being ‘deemed’ to have given tax advice is simply too high.”

Time to push back

Property lawyers are encouraged to:

• Make it clear to clients that where a transaction is complex, they must obtain independent, regulated tax advice.

• Keep a copy of that advice on file—this not only ensures the client is properly protected but also ticks the compliance box for the firm.

• Decide early: if a client refuses to pay for specialist advice, the firm must consider whether it can continue to act.

The message is clear: clients must pay for professional expertise—legal, accounting or tax—when the situation demands it.

Trying to “help out” by doing the calculation yourself may feel client-friendly in the moment but can open a can of worms no firm wants to face.

How we can support you

Our team specialises in complex SDLT advice.

We work alongside solicitors to give clients peace of mind, while ensuring firms stay fully compliant and protected.

If you’d like to discuss how we can support your firm or your clients with SDLT matters, please get in touch.

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