VAT treatment is a work of art

VAT treatment is a work of art

The government is to continue to press hard for special VAT treatment for works of art in a bid to preserve the pre-eminent position of the London art market.

The pledge to actively seek support for tax breaks from other member states through qualified majority voting was given in the Lords by government spokesman Lord Haskel. It aims to protect the rights of artists such as Damien Hirst, whose work (above) was sold for #71,900 at Christie’s last month.

Lord Haskel also signalled Labour’s decision to oppose a droit de suite – allowance of continued financial rights for artists on future sales – as proposed by the European Commission. Dealers fear business would flee to Geneva and New York as a result.

Lord Haskel said the commission was committed to re-examining the impact of the seventh VAT directive on the competitiveness of the EC art market compared with the art markets of third countries. He said a Department of Trade and Industry study of the ‘worst-case scenario’ indicated UK dealers and auctioneers could lose up to #68m in fees and 5,000 jobs.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource