October 29, 2025
SDLT, LTT and LBTT
Tax rules have reached ridiculous levels of complexity and need to be simplified. The sheer volume of exemptions, reliefs, and technicalities means that even seasoned professionals struggle to keep up, let alone clients.
The Angela Rayner case has underscored just how labyrinthine the SDLT rules have become. If a senior politician can be caught out, what chance does the average buyer or seller have?
Conveyancers are increasingly expected to be tax experts, risk managers, and problem solvers. However, ultimately conveyancers will be blamed by clients if there are any tax errors.
Although the Law Society guidance advises that solicitors without specialist knowledge should refer clients for expert advice, many clients struggle to understand why they must seek further advice at an additional cost—particularly when the conveyancer prepares and files the SDLT return. Even simple transactions can quickly become “higher risk” as reliefs and surcharges overlap.
The abolition of Multiple Dwellings Relief was widely welcomed for putting an end to dubious claims that conveyancers had missed reliefs. However, the remaining reliefs and surcharges remain complex.
For instance, the non-UK resident surcharge uses a 365-day residency test that can be difficult to apply or verify, and the higher rates for additional properties can unfairly penalise clients buying before selling their main home. As the Angela Rayner case highlighted, ownership through trusts or indirect interests only adds confusion.
Some have proposed shifting SDLT liability from buyer to seller, but this could create double taxation—sellers have already paid SDLT when purchasing—and new enforcement issues. Buyers currently cannot register title without proof of SDLT payment; how this would work under a seller-based system remains unclear.
There is speculation that SDLT could move from a one-off payment to monthly instalments. While this might appear to ease buyers’ financial pressure, it would be unworkable in practice. Conveyancers managing ongoing payments could breach SRA accounting rules, and the Land Registry’s current processes depend on SDLT receipts. If the way SDLT is paid is going to be an ongoing commitment, there could be an argument to remove it completely from the conveyancing process and have it processed with specialist tax advisers.
Frequent SDLT “holidays” and last-minute changes have taken a toll, with many conveyancers burnt out and leaving the profession. The Round Table’s message was clear: consult the professionals. Real reform needs to be shaped by those who deal with the consequences daily.
With the Budget expected in late November, the property market once again waits anxiously for news. Each announcement creates a “cliff edge” effect, with clients rushing or delaying transactions. The market needs stability, not another rollercoaster of temporary measures.
SDLT reform is overdue, but it must prioritise clarity, fairness and consultation over complexity. Reliefs and exemptions should support everyday buyers and sellers, not just those with specialist advice or elaborate arrangements.
From the growing burden on conveyancers to the uncertainty of potential reform, one message stands out: SDLT has become too complicated for its own good. Simplification—done in partnership with practitioners—would benefit everyone involved.
If you have questions about SDLT or would like to discuss how these issues might affect your transactions, please contact us.
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