New levy 'threatens London art sales'

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When UK exemption from droit de suite or Artist Resale Rights runs out, heirs of artists who died in the past 70 years will get a share in sold works. Under the legislation, art dealers and auctioneers will have to pay the heirs or estate up to four per cent of the sale price of artworks over 1,000 (£840).

Critics claim this will put London - the leading European art centre - at a disadvantage with rivals outside Europe, such as New York, which do not have the levy.

Anthony Browne, chairman of the British Art Market Federation, told the Guardian: "If [ARR] existed worldwide, you'd have a level playing field. But it doesn't." Artists' representatives claim the small royalty merely gives artists a stake in their work just as copyright laws accord to authors or composers.

Tania Spriggens of the Design and Arts Copyright Society collecting agency said the threat was exaggerated.

When then prime minister Tony Blair won a "derogation" or exemption from the EU laws in 2006, he permitted its application to living artists. Ms Spriggens said there were no signs this had diverted sales of works overseas.