Artist’s Resale Right: What Urban Art Collectors Should Know

In an increasingly sophisticated art market, it is important for collectors to understand the legal frameworks that shape acquisitions and resales. Among these, Artist’s Resale Right (ARR) is a statutory entitlement designed to ensure that artists, or their estates, benefit financially from the secondary market value of their work. The Artist’s Resale Right (ARR) entitles creators (‘authors’) of original works of art (including paintings, engravings, sculpture and ceramics) to a royalty each time one of their works is resold through an auction house or art market professional.

“Artist’s Resale Right is not just a legal requirement and it’s a principle we stand by. At GraffitiStreet, we believe our artists deserve to share in the ongoing value of their work. It’s part of what makes the art world more sustainable and respectful for all parties involved.”
 Donna Haden, Co-Founder/ Creative Director, GraffitiStreet Gallery

At GraffitiStreet Gallery, we are committed to transparency, ethical collecting, and full compliance with UK and international resale regulations. This article outlines the essentials of ARR, how it is calculated, and what its application means for both buyers and sellers.

What Is Artist’s Resale Right (ARR)?

Established in the UK in 2006 under the Artist’s Resale Right Regulations, ARR entitles an artist to receive a royalty each time an original work is resold through a professional intermediary, provided certain conditions are met.

This royalty reflects the artist’s continuing authorship and contribution to the work’s market appreciation. ARR is not payable on first sales from the artist directly to a collector, but rather on subsequent resales within the regulated art market.

STIK Photo Credit Stik

Eligibility Criteria

ARR applies under the following conditions:

• The artist is a UK national, or a citizen of a qualifying country that recognises reciprocal ARR rights
• The work is resold through a gallery, auction house, or art dealer
• The resale price exceeds £1,000 as of
• The work is an original piece of art or a limited edition print, signed and numbered by the artist
• The sale is not exempt under the UK’s ‘bought as stock’ exemption

Purchase Stik – Walk (Red Edition) Print via GraffitiStreet here

Updated ARR Thresholds and Royalty Structure (April 2024)

Artist’s Resale Right (ARR) royalties are calculated on a sliding scale based on the resale price of a qualifying artwork. As of 1 April 2024, the minimum threshold for ARR in the UK is £1,000, replacing the previous threshold of €1,000. The maximum royalty payable on any single resale is now capped at £12,500, replacing the previous threshold of €12,500. This update was introduced under The Design Right, Artist’s Resale Right and Copyright (Amendment) Regulations 2023, aligning ARR with the UK’s domestic currency and streamlining compliance for collectors and art professionals.

ARR is exempt of VAT. For sales completed prior to 1 April 2024, ARR continues to be calculated in euros, with a threshold of €1,000 and a maximum royalty cap of €12,500.

The artist or estate receives the royalty through an approved collecting society, such as DACS (Design and Artists Copyright Society) or ACS (Artists’ Collecting Society).

Qualifying Nationalities

ARR applies to artists who are nationals of the United Kingdom and other countries that observe reciprocal arrangements under international law. This includes: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and select non-EU countries including New Zealand, Australia, Iceland, Norway, and Serbia.

Purchase Invader – Alert (Red) Print via GraffitiStreet here

Exemptions: The ‘Bought as Stock’ Provision

Under UK legislation, ARR does not apply if all three apply:

• The artwork was purchased directly from the artist
• The resale occurs within three years of that original acquisition
• The resale price does not exceed £10,000 (€10,000 prior to 1 April 2024) 

This exemption, often referred to as the ‘bought as stock’ clause, is designed to support dealers and galleries investing in emerging artists by allowing a short-term resale window without incurring ARR on lower-value transactions.

Limited Edition Prints and ARR

The Artist’s Resale Right (ARR) entitles creators (‘authors’) of original works of art (including paintings, engravings, sculpture and ceramics) to a royalty each time one of their works is resold through an auction house or art market professional. Collectors should be aware that ARR also applies to limited edition prints, provided they meet the following criteria:

• They are signed and numbered by the artist
• They are produced in limited quantities under the artist’s supervision
• They are resold for more than £1,000 through a professional intermediary

Prints such as Banksy – Soup Can (Banana/Lime/Purple), or editions by artists like STIK, Invader, and D*Face fall into this category.

Purchase Banksy – Soup Can (Banana/Lime/Purple) via GraffitiStreet here

Application in Practice: Banksy, Morons (Sepia)

Consider the example of our client reselling Banksy’s Morons (Sepia), a well-known screen print edition, through GraffitiStreet Gallery at a price of £33,000. The artist, Banksy, is a living UK national, the work is a signed and numbered limited edition, and the transaction is conducted through us, a professional intermediary. In this case, ARR applies, and the royalty due is calculated at the 4% of the sale price: Meaning ARR = £1,320 This amount is pre calculated and deducted from the final price and remitted to the artist via a collecting society, such as DACS.

Purchase Banksy – Morons (Sepia) via GraffitiStreet here

Does ARR Apply If a Work Is Resold at a Loss?

Yes. Under UK law, Artist’s Resale Right is calculated based on the resale price of the artwork and not on whether the seller makes a profit. If a qualifying work is resold through a professional intermediary for more than £1,000, ARR applies regardless of whether the original purchase price was higher or lower. For example, if a collector originally acquired a Banksy print for £14,000 and later resells it for £12,000, a 4% resale royalty is still due on the £12,000, even though the sale results in a financial loss. The ARR framework is designed to support artists based on market activity, not on the profitability of individual transactions.

Purchase D*Face – Going Nowhere Fast Print via GraffitiStreet here

GraffitiStreet’s ARR Policy

At GraffitiStreet Gallery, all prices quoted on our website are inclusive of ARR, where applicable. This ensures a clear and seamless experience for collectors, without unexpected add-on fees at the point of sale. Only shipping costs are calculated separately at checkout, based on location and service level. We administer all ARR remittances on behalf of sellers and ensure that artists or their estates receive the correct royalty in full compliance with UK law. If you are considering reselling an artwork or are acquiring work from the secondary market, our team will guide you through ARR, authentication, condition reports, and logistics with discretion and expertise.

Further Reading & Resources

For more information on ARR, we recommend the following resources:

• UK Government ARR Guidance (GOV.UK)
• DACS – Artist’s Resale Right Explained
• ACS – Artists’ Collecting Society

For further guidance or to discuss a specific acquisition or consignment, we invite collectors to contact us directly. You are welcome to visit us at GraffitiStreet Gallery, located at 25a West Street, Chichester, West Sussex, or explore our current offerings and services online at graffitistreet.com. Our team is available to assist with enquiries, secondary market sales, and tailored advisory support.

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