In brief
- Personal ownership of high-value collectibles in the UK or Australia exposes the owner to inheritance tax rates of up to 40% and capital gains tax of 20–28% on disposal.
- The Department of Culture and Tourism – Abu Dhabi launched an Art Customs Duty Waiver Programme in February 2026 for artworks valued from AED 10 million.
- A RAK ICC Foundation holding structure separates the governance of a collection from its physical location, reducing the tax burden on succession and disposal while preserving privacy.
Fine art, rare watches, and other high-value collectibles are frequently the most under-structured component of private wealth. When a multimillion-dollar painting sits in a London residence, it forms part of the deceased's estate on death. In the UK, that means inheritance tax (IHT) at up to 40%. Any sale during the owner's lifetime triggers capital gains tax (CGT) at rates between 20% and 28%. The UAE's Corporate Tax framework, combined with recent customs duty reforms and the RAK ICC Foundation structure, offers a different approach. Separating governance from physical location A structured approach to collectibles requires a clear distinction between who governs the collection and who physically holds it. The RAK ICC Foundation sits at the top as the governance layer. It's governed by private By-Laws and a Charter that define the management, conservation, and eventual distribution of the collection across generations. Below the Foundation, a RAK ICC Business Company (BC) acts as the legal owner of the physical assets. This subsidiary holds title to the artworks and other chattels. The collection itself is typically stored in a high-security freeport or bonded warehouse: Geneva, Singapore, or the Dubai South Free Port at Mohammed Bin Rashid Aerospace Hub all provide climate-controlled, customs-bonded facilities designed for this purpose. The Abu Dhabi Art Customs Duty Waiver Programme In February 2026, the Department of Culture and Tourism – Abu Dhabi (DCT Abu Dhabi) launched a new Art Customs Duty Waiver Programme. The initiative waives the standard 5% customs duty on eligible artworks valued from AED 10 million, with a minimum commitment period of three years. A specialised
This article is for general informational purposes only and does not constitute legal advice. Readers should seek professional advice tailored to their specific circumstances. Information is current as of the publication date and may be subject to change. Different rules may apply in different jurisdictions within the UAE.
