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1. Introduction

The Artist鈥檚 Resale Right (ARR) entitles creators (鈥榓uthors鈥�) 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 拢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 拢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, Artist鈥檚 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 鈧�1,000 and royalties are capped at 鈧�12,500.

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 拢200,000 after 1 April 2024 would amount to 拢6,500. This is made up of:

1st tier 0 to 拢50,000 will attract a royalty of 4% i.e. 拢2,000

2nd tier 拢50,001 will attract a royalty of 3% i.e. 拢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 拢10,000 (鈧�10,000 prior to 1 April 2024) or less. This is generally known as the 鈥榖ought as stock exception鈥�.聽

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 countries聽

The UK has entered into a number of Free Trade Agreements (FTAs) which include ARR reciprocal arrangement provisions. These arrangements mean聽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.聽聽

European Economic Area Countries聽聽

The UK has reciprocal ARR arrangements with European Union Member States and EEA EFTA States.聽The EU- UK Trade and Cooperation Agreement and UK-Iceland, Liechtenstein and Norway FTA聽 includes provisions retaining reciprocal ARR arrangements following the UK鈥檚 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.聽聽

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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 nationals鈥� artwork resales in the UK.聽聽

New Zealand聽聽

From 1 December 2024聽ARR聽reciprocal arrangements outlined in the UK-New Zealand FTA聽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 nationals鈥� artwork resales in the UK.