Artist's Resale Right explained
Artist's Resale Right (ARR) is a royalty paid to artists, or their estates, when an original work is resold through an auction house or dealer. It can appear as an extra line on your invoice.
When does it apply?
- The work is an original work of art, such as a painting, engraving, sculpture or ceramic.
- The artist is alive, or died within the last 70 years.
- The sale goes through an auction house or art market professional.
- The sale price is £1,000 or more. Below that, no ARR is due.
These are the UK rules as set out by GOV.UK, which have applied in pounds since 1 April 2024. Before that, the thresholds were in euros.
How much is it?
ARR is a sliding scale, worked out in bands a bit like income tax. The first £50,000 of the sale price attracts 4%, and the next band attracts 3%. Higher bands pay lower percentages, and the royalty on any one sale is capped at £12,500. It's worked out on the sale price, not on your premium or VAT.
| Sale price | Working | ARR |
| £1,000 | 4% of £1,000 | £40.00 |
| £2,000 | 4% of £2,000 | £80.00 |
| £60,000 | 4% of £50,000 + 3% of £10,000 | £2,300.00 |
Who pays it?
The royalty is collected by the auction house and passed on to the artist through a collecting society. Many auction houses add it to the buyer's invoice as a separate line, but terms vary, so check the conditions of sale and the lot description before you bid.
Putting it in your total
Take a £2,000 hammer price with a 25% premium plus VAT, and £80 of ARR on the invoice:
| Hammer price | £2,000.00 |
| Buyer's premium (25%) | £500.00 |
| VAT at 20% on the premium | £100.00 |
| Artist's Resale Right | £80.00 |
| Total to pay | £2,680.00 |
How BidCalc helps
BidCalc doesn't have a dedicated ARR box and doesn't work it out for you. But it can still handle it: work out the ARR yourself using the figures above, then enter it in the Delivery cost box, which works as a general "other fixed costs" box, so it's added to your total. This assumes your invoice shows ARR as a separate line without VAT, so check yours.
See the £2,680 example GOV.UK guidanceGeneral information only, not tax or financial advice. Auction houses set their own fees and terms, so always check the conditions of sale and confirm the details with the auction house before you bid. Check the current rates and rules on GOV.UK.