Through Art Market & You, Art From Us provides you Analysis, Opinion and Factual Reports regarding the current on-goings of the Global Art Market. In this article, we delve deeper into our discussion on Brexit and its Impact on the Art Market.
BREXIT & its Predicted Benefits :
– Despite the rebate on EU membership, the United Kingdom seemingly contributes more to the European Union that it gains economically. In 2015, Britain paid £12.9 billion into the EU after rebate. However, not even half this amount was invested back into the country. By leaving the EU, Britain would be able to invest more into their own economy. As well as promote local Arts & Culture.
– The VAT for importing works of art into the UK is currently as nominal as 5%. But by remaining part of the EU, Britain may in the future have to increase this rate, as part of reforms for standardised taxation for all member countries. With this, Britain may lose its competitive advantage, thus affecting London’s identity as a cultural hub.
– Following BREXIT, Britain can, like the US, choose to completely do away with the Artist Resale Rights. These were initially introduced in 2006, in compliance with the European Directive of 2001. At the time, the introduction of resale royalties was opposed by artists and institutions alike. While the former feared a drop in their value and sales, and the latter feared a price-hike in art purchasing. Following BREXIT, Britain’s laws could become more liberal, thus providing a more conducive environment for the arts to flourish.
Indifference in the Market?
Many gallerists, artists as well as institutional heads remain unaffected by Britain’s exit and believe in its ability to survive as a global cultural centre, even without being a member nation in the EU. In spite of admitting to it being a tough auction season, Alex Branczik, the Sotheby’s Head of Contemporary Art in Europe emphasised, “passion for art collecting overrides broader concerns”.
Our first Article on BREXIT and the Art Market was such a hit, that all of you asked us to give insights and information on the predicted benefits of BREXIT, if any, on the British Art Market. So, here it is!
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