Following a European Directive in 2006, the Artist's Resale Right entitles creators of original works of art to a royalty each time their work is resold, with the involvement of an auction house, for £1,000 or more.
This right covers sales of work by living artists and also the beneficiaries and heirs of artists deceased within the last 70 years of the sale.
The artist’s royalty depends on the hammer price (sale price without any VAT or Buyer's Premium) calculated in Pounds Sterling. The higher the sale price of the artwork, the lower the overall royalty rate.
The royalty is worked out according to a sliding scale from 4% to 0.25%.
|
Hammer Price |
Royalty |
|
From £1,000 to £50,000 |
4% |
|
From £50,000.01 to £200,000 |
3% |
|
From £200,000.01 to £350,000 |
1% |
|
From £350,000.01 to £500,000 |
0.5% |
|
Exceeding £500,000 |
0.25% |
An artwork must sell for £1,000 or more to qualify for a royalty.
The Artist’s Resale Right applies to the sale of artworks in the European Economic Area (EEA). The following countries are in the EEA:
Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, plus the United Kingdom, and Australia (as of 31 March 2024) and New Zealand (as of 1 December 2024) for the purposes of ARR.
Artists who are nationals of these countries are therefore generally eligible to receive resale royalties. The nationality criteria only applies to the artist and not to the beneficiaries or heirs.
The Artist’s Resale Right does not apply to all sales of artworks. A royalty is only due if the following conditions are met:
This royalty, where applicable, will be charged to the purchaser. It is exempt of VAT.