The right only applies if the resale price is the equivalent of €1,000 or more and the royalty rate is up to four percent. The new Artist's Resale Right Regulations implement the EU Artist's Re-sale Right Directive.
Minister for Science and Innovation Lord Sainsbury observed that the new right ensures a just reward for living British artists' creativity while protecting the valuable UK art market.
"The balanced Government approach will benefit struggling artists without placing a heavy administrative burden on the art market and will minimise the risk that sales would be driven offshore," he said.
The Directive required the Government to set the threshold at which the royalty is paid at between zero and €3,000.
Eighty-eight per cent of works by living artists sold in the UK in the €1,000 to €3,000 price range in 2003-2004 were by British artists, according to the Government.
To protect the most valuable sector of the UK art market, which is works by deceased artists, the UK Government negotiated a delay in the application of the royalty to works by deceased artists until 2010, with a possible extension to 2012. It says it will seek to extend it indefinitely.
