More Labour Lunacy
Discussion
For some time the EU (basically the French) have been trying to bring in a new tax called Droit de Suite. This is effectively a re-sale tax on works of art. Basically an artist sells a work of art and gets paid for it. It re-sells sometime later and he gets paid again. It's mad and the upshot will be that young artists will find that galleries will not take their work and at the top end of the market major works will go to New York or Switzerland to be sold. As well as the art market many artists themselves are against the tax, including David Hockney and Howard Hodgkin, but they are being ignored.
So Europe will lose out. Which is fine if you're any European other than a Brit because over 50% of the EU art market happens right here in Britain. So this is in effect a tax on the British art market.
The UK government have fought against this tax. Even Blair himself opposed it. But they have now (as they always do) kow towed to the French and accepted it. And here's the rub. While the rest of Europe will impose the Tax on all works valued over 3,000 euros the British, having opposed its introduction from the outset, will introduce it at 1,000 euros!
It beggars belief.
So Europe will lose out. Which is fine if you're any European other than a Brit because over 50% of the EU art market happens right here in Britain. So this is in effect a tax on the British art market.
The UK government have fought against this tax. Even Blair himself opposed it. But they have now (as they always do) kow towed to the French and accepted it. And here's the rub. While the rest of Europe will impose the Tax on all works valued over 3,000 euros the British, having opposed its introduction from the outset, will introduce it at 1,000 euros!
It beggars belief.
eccles said:
what happens if the artist is dead?
Good question. From 2010 you still have to pay the droit du suite for 70 years after the artists death.
This is then (after the collecting agents 25%
fee is deducted) paid to his or her relatives. (Presumably if no relatives exist it will go into an EU slush fund). 
Bloody absurd.
Why not put a tax on resale of home improvments, so that when you sell a house the builder who put on the extension or built the conservatory gets a bonus.
You couldn't make it up.
The whole thing is just to act as a freeby pension to the bone idle artfartytypes.
Plus of course creating another load of government non jobs administerring it.
DAZ
>> Edited by dazren on Wednesday 25th January 12:54
Why not put a tax on resale of home improvments, so that when you sell a house the builder who put on the extension or built the conservatory gets a bonus.
You couldn't make it up.
The whole thing is just to act as a freeby pension to the bone idle artfartytypes.
Plus of course creating another load of government non jobs administerring it.
DAZ
>> Edited by dazren on Wednesday 25th January 12:54
simpo two said:
I suppose it's like Royalties. At least it goes to the artist and not the Govt.
What it is another tax on business that will seriously damage the British art market. Lets say you have a contemporary collection worth £1m and you want to sell it. Do you put it up for sale in London and pay £40k in droit du suite (on top of all the other costs) or do you send it to NY or Geneva and save the £40k. The art market is global so you dont lose buyers by selling in NY as opposed to London.
It's another example of the EU damaging business for no reason. Even the artists dont want droit du suite!!
Jaglover said:
Shouldn't the title be 'more EU lunancy' 
I think the point is that the EU comes up with some daft idea that the rest of them completely ignore, yet the brits, in the form of the current so-called government, 'gold-plate' the ridiculous legislation and make it even more absurd in the process.
Jaglover said:
Shouldn't the title be 'more EU lunancy'
But you're right, it is madness. Yet another British industry sacrificed for the benefit of the 'European' ideal.
It is EU lunacy for sure. But the most lunatic thing is our Govt imposing it at a much lower level than all the other countries. It's going to be a nightmare for young artists.
Jaglover said:
Shouldn't the title be 'more EU lunancy'
But you're right, it is madness. Yet another British industry sacrificed for the benefit of the 'European' ideal.
No. This tax has been around for a while but the UK has exempted works of art below a certain threshold (can't remember the level). However the bright sparks in our Govt have now removed this exemption which will result in the art trade losing business to Switzerland and the US.
What is even better is that it is believed that the UK will set a higher levy than Germany or France which will shaft the art market here even more....
Egbert Nobacon said:
Shouldn't the title be 'more EU lunancy'
But you're right, it is madness. Yet another British industry sacrificed for the benefit of the 'European' ideal.
No. This tax has been around for a while but the UK has exempted works of art below a certain threshold (can't remember the level). However the bright sparks in our Govt have now removed this exemption which will result in the art trade losing business to Switzerland and the US.
What is even better is that it is believed that the UK will set a higher levy than Germany or France which will shaft the art market here even more....
Its only been about in France. It's never been imposed in the UK before at any level. (I'm an art dealer).
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