Artist's Resale Right
Authors of original works of art are entitled to a royalty each time one of their works is resold through an art market professional.
1. Introduction
The Artist바카라 사이트™s Resale Right (ARR) entitles creators (바카라 사이트˜authors바카라 사이트™) of original works of art (including paintings, engravings, sculpture and ceramics) to a royalty each time one of their works is resold through an auction house or art market professional.
The right to this royalty is available for the same period as copyright, so applies for the lifetime of an artist and for 70 years following their death.
ARR derives from a European Directive and came into force in the UK in 2006.
2. Calculation of royalties
The right only applies when the sale price reaches or exceeds £1,000 and is calculated on a sliding scale. Royalties are also capped so that the total amount of the royalty paid for any single sale of a work cannot exceed £12,500. The table below sets out the sliding scale of royalty payments.
These price thresholds and royalty payments were introduced by The Design Right, Artist바카라 사이트™s Resale Right and Copyright (Amendment) Regulations 2023 and apply from 1 April 2024.
Prior to 1 April 2024, resale price thresholds and royalty percentages were in euros instead of pounds. For sales prior to 1 April 2024, the right applies to sales prices over €1,000 and royalties are capped at €12,500.
Royalty | Resale price |
---|---|
4% | up to £50,000 |
3% | between £50,000.01 and £200,000 |
1% | between £200,000.01 and £350,000 |
0.5% | between £350,000.01 and £500,000 |
0.25% | in excess of £500,000 |
This scale is also cumulative in much the same way as income tax is calculated. For example, the royalty payable for an artwork sold for £200,000 after 1 April 2024 would amount to £6,500. This is made up of:
1st tier 0 to £50,000 will attract a royalty of 4% i.e. £2,000
2nd tier £50,001 will attract a royalty of 3% i.e. £4,500
ARR is exempt of VAT.
3. Collection of royalties
ARR in the UK is managed by collecting societies who then distribute the royalty to the artists. Individual artists cannot request payments directly from the art market professionals involved in the sale.
For more information about the administration of ARR you can contact the or . Frequently asked questions on ARR are answered on the and the .
4. Exemptions
Some sales are exempt. For example, where the work being resold was bought directly from the artist less than three years previously and it is being resold for £10,000 (€10,000 prior to 1 April 2024) or less. This is generally known as the 바카라 사이트˜bought as stock exception바카라 사이트™.Â
Sales between private individuals, without the use of an art market professional, or to public, non-profit making museums do not attract royalty payments.
5. Reciprocal resale royalty arrangements with other countriesÂ
The UK has entered into a number of Free Trade Agreements (FTAs) which include ARR reciprocal arrangement provisions. These arrangements mean UK nationals receive royalties for qualifying artwork resales in certain countries, listed below. It also means nationals from the countries listed below receive royalties for qualifying artwork resales in the UK. Â
European Economic Area Countries Â
The UK has reciprocal ARR arrangements with European Union Member States and EEA EFTA States. The EU- UK Trade and Cooperation Agreement and UK-Iceland, Liechtenstein and Norway FTA includes provisions retaining reciprocal ARR arrangements following the UK바카라 사이트™s exit from the EU. This means UK nationals continue to benefit from resale royalties in the EEA. EEA nationals also continue to benefit from royalties in the UK on qualifying artwork resales. Â
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From 31 March 2024 ARR reciprocal arrangements outlined in the UK-Australia FTA are in force. This means artists in both countries will benefit: UK nationals receive royalties on qualifying artwork resales in Australia and vice versa for Australian nationals바카라 사이트™ artwork resales in the UK. Â
New Zealand Â
From 1 December 2024Â ARRÂ reciprocal arrangements outlined in the UK-New Zealand FTAÂ are in force. This means artists in both countries will benefit: UK nationals receive royalties on qualifying artwork resales in New Zealand and vice versa for New Zealand nationals바카라 사이트™ artwork resales in the UK.