16 17th December 2011 dealers’ dossier


artist’s resale right continued from page 15


25 years ago by a group of artists who, according to DACS’ website, currently retain 21 per cent of the revenue they collect to cover operating costs. What is galling to many dealers,


including Andrew, is that while the trade stand to be prosecuted for not paying the levy, the collecting agencies which they must pay are seemingly entirely unregulated. DACS does not require any written


mandate from the estate of an artist asking it to collect the money on their behalf, nor any legal obligation to find the entitled recipient, so it looks likely that the money will often remain uncollected, as is already the case with some living artists. “Our regulation is being furthered


by an apparently totally unregulated, mysterious organisation,” said Andrew. He is on the committee of the Society


of London Art Dealers (SLAD), just one of the organisations that have been lobbying hard against the ARR extension over the past year. His views on the apparent lack of


policing of collection agencies are echoed by James Roundell, chairman of SLAD and director of London gallery Simon Dickinson. “Collecting societies should make


clear for which artists and heirs they have mandates,” he says. “There is a lack of transparency in those collecting ARR at a time when the art market is trying to be more transparent. “We are pretty disappointed at the


government’s lack of support for the art trade, which is one of the great successes of the UK economy, with Britain accounting for around 60% of the European art market. At a time of difficult trading conditions, when margins are squeezed at all times, dealers will have to repeatedly absorb the cost.” He also pointed out that the


European Commission has not completed the review into ARR whose


When, what and how much?


When does the Artist’s Resale Right apply? 1) When an artwork is sold at €1000 (approximately £820) or more. 2) When an artwork is sold on the secondary market. 3) When a gallery, dealer, auction house or agent is involved in the sale. The right does not apply when the sale occurs between two private individuals. 4) When the artist is a national of an EEA country or certain other countries (the list of countries which can be downloaded from the DACS website. www.dacs.org.uk).


What does the Artist’s Resale Right legislation require an art market professional to do? 1) Pay a resale royalty on the resale of a work of art where the artist is a qualifying national, either living or (after January 1) deceased within the past 70 years. 2) Respond within 90 days to any requests for information from the collecting society to determine where a resale royalty is due.


3) Make a provision for the resale royalty up until three years following the sale of the work of art.


How much is this going to cost me? The rate for ARR is calculated in a cumulative sliding scale from 4% to 0.25% of the entire sale price, which means that where the sales price cuts across more than one royalty band, the royalty on each portion of the price must be calculated accordingly and added together to arrive at the final sum. The maximum royalty an artist can earn for any given work is capped at €12,500 which applies to works sold for €2 million and above. Portion of the sale price royalty rate: From €0 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%


(information obtained from the DACS website)


“There is a real danger of overseas consignors avoiding the levy by selling works in these countries which have not imposed it instead of in London”


– James Roundell, chairman of SLAD


findings it should have submitted by the beginning of 2009. The EC is now trying to hurry through a report a mere month before the extension. But James is also keen to point out that while the trade may oppose ARR, dealers are nevertheless keen to support artists and have a close relationship with them. “We want to develop contemporary


artists and hold exhibitions of their work,” he says. “But contemporary artists will only thrive if there is a lively


and successful art trade.” A large part of the problem is the


inconsistent adoption of the Resale Right internationally. As James explains: “When the


proposal was first introduced the levy was envisaged as being worldwide, so that all countries would impose it and there would be no competitive disadvantage in adopting it. “But now you have America (with the exception of California), Switzerland,


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Tatton Park, Knutsford, Cheshire, WA16 6QN www.cooperevents.com 2nd - 4th March


The Powderham Castle Antiques & Fine Art Fair


Nr Exeter, Devon, EX6 8JQ Tel: 01278 784912


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China and India not adopting ARR, all of them rapidly expanding areas of the market, so there is a real danger of overseas consignors avoiding the levy by selling works in these countries instead of in London.” Nevertheless, the Resale Right


extension is inevitable and, for now, there is no option but to prepare for how to deal with it. SLAD will shortly be issuing a paper


providing guidance on the issue to its members, and on Wednesday, January 11, 2012, there will be a seminar, organised in conjunction with BADA and LAPADA, for members of the three organisations at Dickinson in Jermyn Street, London. Its purpose is to explain and discuss


ARR in the context of its extension to the works of deceased artists. Members of trade bodies wishing


to attend are asked to reserve a place by notifying their respective trade associations. For the time being, for further details


of when the Resale Right applies and how to pay the levy, visit www.dacs. org.uk


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