The United Kingdom. It is a member of the European Union, and a part of the Eurozone. In fact, it is the second-largest economy in the EU after Germany. So, if you need to find out what will happen with Brexit and its effect on the art world, start your research here.
The United Kingdom has traditionally been an important part of the international art market, but it has never been its leader. In 2016, for example, it was placed third after China and the U.S. in terms of global art sales by auction houses. The UK was also ranked third by the Impressionist and Modern Art Affiliates (IMA) in terms of auctions turnover in 2016, right behind China and the U.S. So, if we are talking about potential changes due to Brexit, start to look here first because we can expect some major changes in the near future
The United Kingdom’s vote to leave the EU, historically known as Brexit, has left many in the art world very concerned about the future. The most recent and accurate predictions show that it may take up to two years for all of the details to be finalized and for the UK to completely leave the EU. In the meantime, how will this affect the art market?
Tensions between Great Britain and Spain over Gibraltar have surfaced (again) – will this lead to a trade war? What about trade with France? Could these countries seeking more independence from Brussels influence their exports to England? Will there be changes in import laws due to negotiations with new trade partners like India or China? What will happen to shipping costs if the UK decides not to join the European Customs Union?
Will businesses move, or at least have contingency plans in place, over fears of possible economic stagnation? Will businesses be able to move employees freely between countries without visa restrictions as they currently do? Will England revert back to its former currency, the pound sterling, or will it adopt a Euro-style currency instead? If they do revert back to pounds, what impact will this have on prices and costs of goods throughout Europe and around the globe? Will there be border or custom checks when traveling within Europe? How
This blog is a free service provided by ArtVestor, a UK based fine art logistics company. It is intended to foster discussion on how the UK’s decision to exit the EU may affect the art market.
ArtVestor is a UK based fine art logistics company whose clients include galleries and auction houses. With galleries in London, Hong Kong, and New York, we have been brokering fine art transportation for over seven years. We are uniquely positioned to provide an informed opinion about how Brexit may affect the art market.
Tara Campbell OBE is the founder and CEO of ArtVestor, who brings more than two decades of experience in international trade, logistics and finance. Tara has helped numerous high-value industries navigate complex global supply chains as well as advised on compliance in tax/accounting/legal matters. She holds an MA from Oxford University.
Tara Campbell OBE CEO & Founder ArtVestor
You may be thinking, “How is this going to change the art market?” Well, let’s take a look at some of the possibilities.
Artists and galleries will have to pay VAT on purchases and sales: Currently, VAT of 20% is not paid on artwork purchased from outside of the EU. If Britain leaves the EU, this exemption will no longer apply. This means that artists and galleries will have to pay 20% tax on everything they buy from non-EU countries.
Though it would be great for the British economy if everyone starts buying more art (to avoid paying VAT), it would not be good for the art market. The reason for that is that many artists and galleries import their supplies from abroad using companies like Artelier, which specializes in importing all kinds of supplies for galleries and studios. These companies are based in the EU, which means that art supplies from these companies will now be taxed with VAT if Britain leaves the EU.
The potential result of this scenario is that people will buy less artwork (because a lot of it won’t be worth it) or they will buy supplies outside of Britain to avoid paying VAT (which means that artists and galleries will need to import them).
Artists could lose out on grants: The UK is
The United Kingdom has voted to leave the European Union, a result that sent global markets tumbling and created uncertainty about the future of the country’s economy, trade and political stability. The vote will usher in a new era for Britain and its relations with Europe, but how will it affect the art market?
Taken from:https://www.nytimes.com/2016/06/24/arts/international/brexit-effect-on-art-trade-and-artists.html
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Art has the power to transport us out of our everyday lives, to help us understand new ideas and concepts. At times, it can even become an instrument of protest. That’s why artists have been a powerful advocate for many causes, including human rights and animal welfare, often bringing attention to urgent issues that need to be addressed.
Unlike other industries in the UK, the art market is not being particularly affected so far by Brexit. There are only a handful of British artists who have achieved international fame. The majority of artists in the UK don’t sell their works outside of the EU. In fact, about 63% of sales of art and antiques made in London are made to buyers from within the EU. So for now, Brexit isn’t really affecting the UK’s art industry since their main market is still within Europe.
However, if Brexit affects trade with Europe and prices start dropping, there’s a good chance that collectors will start looking for alternatives such as emerging markets like China or Russia. This will probably bring more interest in Asian art and Russian art, which has been on the decline over the last few years.
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