How does it work when an art consultant facilitates a resale between two private parties?
The resale is considered a professional resale because an art market professional is involved. That means, provided it meets the standard criteria, it will be a qualifying resale.
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How will the scheme work for galleries who often buy at auction to re-sell? Will the royalty be payable twice?
A royalty is payable on each resale. Who is liable in each instance is answered by section 17 of the Act. The seller is always liable, and generally their agent will be jointly and severally liable. Generally a buyer won’t be liable unless no agent ...
Who is an Art Market Professional?
The Act defines “Art Market Professionals” in section 11 as: (a) a person who carries on business as an auctioneer (within the meaning of section 5(3) of the Auctioneers Act 2013): (b) an art dealer: (c) an art consultant: (d) the owner or operator ...
How does the scheme affect Art Market Professionals?
There are legal obligations for Art Market Professions which require them to: report qualifying resales of original visual artworks to RRA; and pay to RRA* the resale royalty payable in respect of each qualifying resale. The seller is also jointly & ...
Getting your resale royalties payment
The timeline for getting your resale royalty: The AMP reporting the resale has 60 business days to do so. Once the report has been reviewed by our research team, the royalty will be either approved or declined. Any approved resales will then be ...
How is the resale value calculated?
The resale royalty payable is calculated at 5% of the “resale value” of the qualifying resale (section 16). Section 10 says that “resale value” means: “the value of the consideration given for the visual artwork under the contract for resale” which ...