Why Simple SDLT Decisions Deserve More Caution Than You Think

HMRC publish detailed guidance on which circumstances do and do not qualify for SDLT reliefs. Yet one of the most common questions we hear from firms is:

“Why would my client need to pay for SDLT support when the position seems obvious and doesn’t require a calculation?”

The reality is that SDLT risk rarely sits in thecomplexity you can see,it sits in the complexity you don’t immediately recognise.

When a matter appears straightforward, we naturally rely on our surface-level understanding. That is precisely when errors occur. By contrast, when something is clearly complicated, we approach it with caution.

A good example is one of the simplest reliefs available:First-Time Buyer (FTB) Relief. Most would agree this should be easy to assess. However, HMRC’s definition of a “first-time buyer” is significantly narrower than many assume. Consider the following examples from HMRC guidance:

Individuals who have never purchased a property but arenoteligible for FTB Relief

• those who have inherited property in certain circumstances

• individuals with property interests held through trusts

• individuals with interests held via usufructs

• those with interests in overseas property

• individuals whose spouse has any interest in another residential property

• joint purchasers where one party is not a first-time buyer

• joint purchasers where one party will not use the property as their main residence

• purchasers intending to use the property for any purpose other than their own main residence

Do you routinely ask all of these questions?

Most firms understandably do not, yet applying FTB Relief incorrectly exposes the client and the firm to unnecessary risk.

Increasing HMRC Scrutiny

HMRC have recently confirmed that firms submitting SDLT returns will be required to register as tax advisers under the upcoming2025–26 Finance Bill. This will place SDLT submissions under even greater scrutiny and attach clearer expectations around due diligence and advice standards.

4Stamp was created to give every conveyancer the same level of tax protection and technical support that they already rely on in other parts of the compliance process.