This is the peer reviewed version of the following article: Palaeo-environment in an ancient low-latitude, arid lacustrine basin with loessite: The Smith Bank Formation (Early Triassic) in the Central North Sea, UK Continental Shelf. Sedimentology, 65: 335–359., which has been published in final form at https://doi.org/10.1111/sed.12382. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.