Read the original guidance here:
HMRC SDLT: Guidance on Completing SDLT3 and SDLT4 Forms: Mineral Rights Codes

Understanding SDLT Forms: Questions on Minerals and Mineral Rights

This section covers question 7 on paper SDLT3 and question 6 on paper SDLT4. The focus is on minerals or mineral rights linked to property transactions, as outlined in paragraph 4.6 of the guidance.

What You Need to Know About Minerals and Mineral Rights

If there are any minerals or mineral rights reserved in a property transaction, you’ll need to provide specific information. If there are no minerals or mineral rights reserved, you can leave that section blank.

Changes from 1 March 2019

Starting 1 March 2019, the question format will change. Instead of entering a code, you will be asked: “Are there any minerals or mineral rights reserved or excluded?” You’ll then have the option to answer either ‘Yes’ or ‘No.’ There will be no need to provide a code.

What Are Minerals and Mineral Rights?

Minerals refer to naturally occurring substances found in the earth. Mineral rights give an individual or company the legal right to extract those resources from the land. Understanding whether these rights are reserved or excluded is essential when submitting property transaction forms.

Identifying Minerals and Mineral Rights

When answering this question, focus only on reservations and exclusions that are clear and easily discovered. For example, such information may be clearly noted on the property’s title or in the details of the transaction.

Codes for Specific Minerals

If you need to provide a code for minerals reserved before 1 March 2019, you will use the following two-digit codes. The table below lists various minerals and their corresponding codes:

• 01 – More than one type shown below
• 02 – Anhydrite
• 03 – Barytes
• 04 – Brickearth
• 05 – Calcite
• 06 – Chalk
• 07 – Chert
• 08 – Clay – ball
• 09 – Clay – brick
• 10 – Clay – cement
• 11 – Clay – china
• 12 – Clay – silica
• 13 – Coal
• 14 – Feldspar
• 15 – Fireclay
• 16 – Flint
• 17 – Fluorspar
• 18 – Fuller’s Earth
• 19 – Granite
• 20 – Gypsum
• 21 – Ironstone
• 22 – Lead
• 23 – Limestone
• 24 – Marl
• 25 – Oil
• 26 – Peat
• 27 – Potash
• 28 – Salt
• 29 – Sand
• 30 – Sand and gravel
• 31 – Sandstone
• 32 – Shale
• 33 – Slate
• 34 – Tin
• 35 – Vein minerals
• 36 – Other

Practical Example

Suppose you are buying a property and the title document indicates that the seller has kept the rights to extract coal. In this case, if the transaction occurred before 1 March 2019, you would enter the code 13 next to the question regarding mineral rights when completing form SDLT3 or SDLT4.

However, if the transaction happens after this date, you would simply answer the question with ‘Yes’ when asked if minerals or mineral rights are reserved, without needing to enter any specific code.

Where to Find Information on Minerals

To find out if there are any minerals or mineral rights reserved relating to a property, check the following sources:

• Property Title Deeds: The title documents for the property will often state if any rights have been reserved.
• Land Registry: You can obtain information about the land’s ownership and any reservations that may exist.
• Transaction Terms: Review the sales agreement or transaction terms, where mineral rights might be mentioned.

What if I Don’t Know?

If you are unsure whether there are any minerals or mineral rights reserved, it’s best to consult with a professional, such as a solicitor or property expert. They can help you investigate whether any rights exist and guide you on how to complete the necessary forms accurately.

Importance of Accurate Information

Providing accurate information about minerals and mineral rights is vital. Not only does this affect the transaction, but it can also have implications for future ownership and rights to the property. Incorrect or misleading information could lead to disputes or complications later on.

It’s always advisable to take this aspect of property transactions seriously. Seek clarification if needed, as this ensures a smoother process and avoids potential issues in the future.

Further Guidance

For additional information and guidance on completing forms SDLT1, SDLT3, and SDLT4, refer to the detailed guidance provided in SDLT62770 – Processing. This document offers specific insight into the questions regarding minerals and mineral rights.

If you wish to dive deeper into SDLT guidelines, you can consult the original document by following this link: SDLTM0000.