Read the original guidance here:
HMRC SDLT: SDLTM62770 – Processing: Further guidance for completing forms SDLT1, SDLT3 and SDLT4: Further guidance for question 7 SDLT3, question 6 SDLT4, minerals or mineral rights reserved

Understanding SDLTM62770: How to Handle Questions About Minerals in SDLT Forms

This article explains the details related to question 7 on the SDLT3 form and question 6 on the SDLT4 form. Both questions relate to the presence of minerals or mineral rights associated with a property.

Details of the Questions

When filling out these forms, it is essential to accurately report any minerals or mineral rights that are either reserved or excluded from the transaction. For SDLT3, question 7 and for SDLT4, question 6, you will follow these guidelines:

• If there are any minerals or mineral rights reserved, you must enter a specific two-digit code from the table provided below.
• If there are no minerals or mineral rights to report, simply leave that section blank.

Change in Questions from March 2019

Since 1 March 2019, there has been a significant change in how these questions are presented:

• Instead of providing a code, the new question will ask: ‘Are there any minerals or mineral rights reserved or excluded?’
• You will now simply answer ‘Yes’ or ‘No.’ There will be no need for a code.

It is important to note that the question only concerns reservations and exceptions that can be easily found. These would be where such details are clearly indicated in the property title or are included in the terms of the transaction.

Minerals and Corresponding Codes

Should you need to enter a code for minerals in your SDLT forms, refer to the list below that identifies various minerals along with their corresponding codes:

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

Examples of How to Fill Out the Forms

Here are some examples to clarify how to complete the SDLT forms concerning minerals:

• If you are purchasing a property where the seller holds rights to clay and chalk, you will need to find the codes for these minerals. In this case:
• Chalk is code 06.
• Clay – brick is code 09.
• You may enter a combined code (if applicable) or specify them individually.
• If a property deed indicates that no mineral rights are reserved, you will simply leave the section blank.
• In a situation where minerals are included in the sale, you will answer ‘Yes’ to the question as of March 2019 and note the specific minerals and rights included.

Important Considerations

When you are filling out these forms, keep in mind the following points:

• Always verify the property title for any mentions of reserved mineral rights. This document will provide clarity on what rights, if any, are included or excluded in the transaction.
• If unsure whether the minerals are reserved or should be reported, consult with a legal professional who can provide guidance based on the specifics of your property transaction.
• The onus is on you, the buyer or seller, to accurately report these rights based on the information available from the title or transaction documents.

Where to Find More Information

If you need further assistance or detailed guidance, refer to the official HMRC documentation or consult resources such as stamp duty technical advice. Specific questions regarding the SDLT forms can be navigated through specialized services designed to help with stamp duty matters, ensuring you are adequately informed as you fill out your forms.