On 23rd June 2016 the UK electorate took the decision to leave the EU – a decision likely to create a period of uncertainty. For the British art market this is likely to lead to a number of changes in the coming months and years.
At the leading London art advisory firm Pall Mall Art Advisors its team is standing-by to assist investors and collectors with any potential questions they may face post-Brexit and is ready to advise investors and collectors on a wide range of issues relating to tangible asset management.
Although the UK has taken the decision to leave the EU, the process for this has not yet begun and the triggering of Article 50 of the Lisbon Treaty is now not likely to happen until the autumn.
Once this article has been triggered the UK will have two year’s under EU law to negotiate an exit during which time the UK will remain a full member, however this period may be longer if all 27 member states agree to extend the deadline.
Any art investor, auction house or dealer with connections to the UK will need to consider how future legislation changes may affect them. One potential implication may be on the sale of works of art overseas or at European art fairs or auctions and investors may need to consider the tax and transportation issues associated with such sales.
However, this is only one potential outcome of many and until a final settlement is reached nothing can be certain.
Rachel Doerr, UK and European Managing Director of Pall Mall Art Advisors, said: “In the short-term the market is likely to experience a degree of market contraction based upon the uncertainty of future arrangements between the EU and UK.
“However, in the long-term art we feel is likely to maintain a fairly stable price and may even provide a last bastion for investors seeking to avoid the disruption of the traditional financial markets.
“Whatever the final outcome is, we remain extremely confident that the UK and London in particular will continue to play an important part of the global art market for many years to come.”
Rachel added that Pall Mall Art Advisors would be closely following the on-going negotiations and would be advising art advisors on the best course of action, as and when changes took place.