Selling at auction: what you'll actually receive

The hammer price isn't what you receive. The auction house takes a commission and often other charges before it pays you, so it helps to know the real figure before you consign.

What can come off

• Seller's commission: a percentage of the hammer price. Rates vary, and for higher-value items some houses will negotiate.
• VAT on the commission, usually at 20%.
• Listing, photography or marketing fees charged by some houses.
• Insurance, handling or collection charges.
• Charges if the lot doesn't sell, which some terms include. Check yours.

A worked example

A lot hammers at £1,000. The commission is 15% plus VAT, there's a £25 listing fee and £10 for insurance:

Things that affect your result

• The reserve. A reserve protects your minimum, but set it too high and the lot may not sell. See what a reserve price is.
• The estimate. It's a guide, so don't count on the top of it. See auction estimates explained.
• Artist's Resale Right. If you're selling art by a qualifying artist, it's normally an additional buyer's charge, but check how your terms treat it. See the guide.
• VAT on the hammer price, which depends on your VAT status and how the sale is run. Ask the auction house or your accountant.
• When you're paid. Settlement usually follows the sale after a delay. Ask for the timetable.

General 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.