Taxation of Art
Throughout history, the taxation of art has been a matter of fluctuating perspectives among governments. At times, they have sought to increase revenue through heightened taxation of art, while in other instances, they have sought to enhance public appeal by reducing such taxes.
United Kingdom
In the early 19th century, the British government implemented a wealth tax on artists’ paintings, exacerbating their already precarious financial situation. The motives behind this move remain unclear and subject to speculation, as it could have been an attempt to impose a form of Darwinian selection by forcing less successful artists to abandon their pursuits, or simply a means of increasing state revenue.
In the 20th century, the United Kingdom introduced an exemption from estate duty for works of art, allowing them to remain in the same family across generations. However, this exemption also has a negative aspect, as the seller must pay a tax at the rate in place at the time the exemption was granted when selling the artwork. For example, if Ms. Smith inherited a painting worth GBP 3 million in 1974, she benefited from the exemption and was not required to pay GBP 2.49 million in…
