Buyer of Art Beware!

More and more, people are looking to art and antiques as an alternative to traditional investments.

However, there are many precautions that art buyers should take before going ahead with a purchase.The art world relies on the principle of “buyer beware”. Emphasis is on the buyer to enquire, not the seller to disclose. There are many issues to bear in mind, the most important being:

Title: Ask for a detailed history of ownership and, in particular, where and when the seller bought the piece.

Attribution and authenticity: Be sure the piece is authentic and is correctly attributed to the artist.That may mean bringing in an expert.

The contract: Ensure your rights are protected should it be discovered that there are question marks over title, attribution or authenticity.

Export and import: There are strict legal rules governing the export and import of works of art. You also need to consider the VAT position. Seek advice if the work will cross borders.

Tax issues should be borne in mind.Transactions in art may result in a capital gains tax or inheritance tax liability and should be addressed from the buyer’s and seller’s or donor’s and donee’s perspective.Art may also be used to offset huge tax obligations in the UK and EU by donation to the state. For more information on purchasing art and antiques, please contact:

Karen Sanig
Tel +44 (0)20 7440 7036
karen.sanig@mishcon.co.uk