Art Sales Under Threat: Conservative Eurosceptic Warns of European Taxes

Strategic Insights -

The UK's thriving art industry, valued at £2.2 billion, is facing two major threats from European taxes, warns Conservative Eurosceptic David Heathcoat-Amory. The introduction of a 5% value-added tax (VAT) on imported art goods from June and the harmonization of the Artists Resale Right, also known as droit de suite, could drive art sales out of Britain and cost up to 51,000 jobs. Heathcoat-Amory is calling on the Government to use its lobbying power in Brussels to argue against these measures, which he believes will damage London's position as the world's premier art centre.

Key Takeaways:

  • The introduction of a 5% VAT on imported art goods from June could drive art sales out of Britain, with Heathcoat-Amory warning of up to 51,000 jobs at risk.
  • The harmonization of Artists Resale Right, or droit de suite, would impose a levy on the resale of modern works of art, with the foreign owner of a Picasso worth $1m facing a payment of $22,240 if sold in London.
  • The VAT rate would be applied to art goods imported into the UK, with average art price rises of £10,000 due to the tax, according to Heathcoat-Amory.
  • The droit de suite directive can be defeated by a blocking minority of at least 26 votes in the Council of Ministers, and Heathcoat-Amory is calling on the Government to lobby Ireland and Italy for support.
  • The chairman of the British Art Market Federation, Anthony Browne, hopes that the measures can be stopped in time, with all major political parties having made sympathetic noises.
  • The art industry is a significant contributor to the UK economy, with a value of £2.2 billion, and is a major source of jobs and revenue for the central government.
  • The Centre for Policy Studies has published a booklet, 'A Market Under Threat', detailing the potential impact of the European taxes on the art industry.

Statistics:

  • The UK art industry is valued at £2.2 billion.
  • Up to 51,000 jobs could be at risk due to the introduction of a 5% VAT on imported art goods.
  • The average art price rise due to the VAT tax would be £10,000.
  • The foreign owner of a Picasso worth $1m would face a payment of $22,240 if sold in London.
  • The droit de suite directive requires a blocking minority of at least 26 votes in the Council of Ministers to be defeated.

Sources:

  • "A Market Under Threat" by David Heathcoat-Amory, Centre for Policy Studies.
  • Interview with David Heathcoat-Amory, Conservative Eurosceptic.
  • "Art sales under threat from EU taxes", The Times.