TaxPersonal TaxVAT 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.

Related Articles

Wealthy individuals could circumvent top tax rate rises

Personal Tax Wealthy individuals could circumvent top tax rate rises

1m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

2m Emma Smith, Managing Editor
Industry reaction: Taylor Review does not go far enough in addressing tax issues

Legal Industry reaction: Taylor Review does not go far enough in addressing tax issues

2m Alia Shoaib, Reporter
HMRC collects record £5bn in inheritance tax

HMRC HMRC collects record £5bn in inheritance tax

3m Emma Smith, Managing Editor
Making Tax Digital: What might HMRC’s penalties model look like?

Corporate Tax Making Tax Digital: What might HMRC’s penalties model look like?

3m Alia Shoaib, Reporter
Does the Taylor Review sufficiently address the gig economy?

Corporate Tax Does the Taylor Review sufficiently address the gig economy?

3m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

3m Emma Smith, Managing Editor
Rangers tax case to have ‘dramatic’ consequences for football and business

Legal Rangers tax case to have ‘dramatic’ consequences for football and business

3m Emma Smith, Managing Editor