UK Budget 2024
Key Takeaways for Art Collectors
The newly released UK Budget brings some insightful changes, and we’re here to help you navigate how these updates could impact your art collection and investment strategy. Here are four key takeaways:
Capital Gains Tax Increase
Budget Update: The capital gains tax (CGT) rate on profits from share sales will increase from up to 20% to up to 24%, making share-based investments more costly for investors when they sell.
What This Means for Art Collectors: This change doesn’t apply to art, making it a more appealing asset for collectors looking to diversify and grow their portfolios. With traditional investment vehicles facing higher taxes, art continues to stand out as a stable, tax-efficient option for preserving wealth without triggering immediate capital gains obligations upon sale.
Inheritance Tax Freeze Until 2030
Budget Update: The inheritance tax threshold freeze has been extended until 2030, keeping the limits on the value that can be passed tax-free at the current level for the next several years.
What This Means for Art Collectors: For collectors thinking long-term, this stability provides an ideal opportunity to plan estates confidently, knowing that their art collections can be a valuable, tax-efficient part of their legacy. Art assets often serve as a strategic way to pass wealth to future generations, helping minimise tax exposure and preserve value across generations.
Minimum Wage Increase
Budget Update: The minimum wage is set to increase, meaning more disposable income for workers and consumers, which can contribute to more robust spending across various sectors.
What This Means for Art Collectors: With increased consumer income, emerging and independent artists may see stronger demand, benefiting collectors interested in affordable art. The rise in minimum wage could elevate newer talent, presenting exciting opportunities for collectors to diversify by supporting up-and-coming artists and gaining early access to unique, creative works that resonate with broader audiences.
Tax Increase on Alcoholic Beverages
Budget Update: Taxes on non-draught alcoholic drinks will increase by the higher inflation measure, making high-end alcoholic beverages more costly to purchase.
What This Means for Art Collectors: With taxes on other luxury items on the rise, art is increasingly appealing as a lasting, value-preserving asset. For collectors looking to build a legacy portfolio, art offers an alternative to high-end consumables, underscoring its value as a desirable and enduring luxury investment.
If you’re intrigued by the potential of fine art and want to explore how it can enhance your investment strategy, register your interest below.
One of our experienced art consultants will be in touch to discuss how Waran’s Fine Art can help you make informed decisions that align with your investment goals.