Cordelia Smith examines the future of housing tax policy in The Law Society Gazette

Cordelia highlights that SDLT often falls into a grey area between legal and tax advice. Conveyancers typically handle SDLT forms and payments, which can lead clients to assume they have received tax advice when they have not. She stresses the importance of conveyancers clarifying the limits of their retainer and referring clients for specialist advice when needed. The growing expectation of low, fixed legal fees exacerbates this issue, despite the reality that transactions and client circumstances are often far more complex.

The article argues that SDLT is ripe for reform, but any alternative would need to replace the £12bn annual revenue it generates. Options such as a capital gains-style tax on sale would likely be unpopular and could discourage downsizing among older homeowners. While the mansion tax may appear fairer, it risks being perceived as punitive for those whose property values have soared due to location rather than choice.

Cordelia concludes that meaningful reform of housing taxes requires long-term planning and careful consideration of regional disparities and market dynamics. For now, the chancellor’s decision to retain SDLT reflects the scale of the challenge and a preference for minimal disruption in a politically sensitive climate.