What will be the impact of Brexit on the fine art market?

Whilst the UK and EU wrangle to find a workable agreement for Brexit, the art world looks for solutions.  In a world where the situation is yet unclear, galleries, museums and curators are turning to industry insiders within the art world to help them understand what they will need to do in the event of a no deal scenario.

Arts Council England publishes advice on a no deal Brexit

On 23 January, the Art Newspaper reported on the advice provided by the Arts Council, should a no deal situation arise. The Arts Council advice recommends that arts and cultural organisations should prepare for a no deal scenario. In this eventuality the Arts Council foresees delays to shipping and customs processing for the six months following the UK leaving the EU – in the event of a no deal scenario.

European Registrars Conference Brexit Update

On 21 December, the UK Registrars Group posted an update on how a no deal would impact customs and transportation of fine art between the UK and the EU. The article, produced following the European Registrars Conference, identified some key areas of consideration, including:

VAT and Duties are expected to be subject to change. Whilst it was expected that the National Import Reliefs Unit (NIRU) system of tax and duty reliefs for temporary imports for exhibition is believed to be retained, the discussion advised that “museums who are not NIRU registered or who import acquisitions outright may need to take this into consideration in budget planning.”

Export licences such as Open Individual Export Licence (OIEL) and Open General Export Licence (OGEL) will remain constant, but there will be subject to checks at borders.

Indemnity

One area that remains to be clarified was indemnity and it’s impact on fine art. From an art shippers perspective, we are monitoring this from the point of view of how to ensure continuity of coverage between the UK and EU.

Momentous Brexit Planning

As we stand today, there is no clear understanding if we are going to have a deal or no deal for Brexit. As part of AGM Group, the business is keeping a focus on three areas:

1. Freight and customs
2. VAT
3. Indemnity

Important: Please note that article has been posted based on what we understand at the point of writing. This article should not be used as advice. Always consult with your fine art moving consultant for the most up to date information before moving works.