How UK auction fees are calculated
The winning bid is only the starting point. Each auctioneer sets its own charges, and the VAT treatment can vary by lot.
Need to work backwards? Calculate your maximum bid →
Worked UK auction fee example
For a £500 hammer price, assume a 20% buyer's premium, 20% VAT on that premium and a 3% online bidding surcharge, with no other charges.
| Hammer price | £500.00 |
|---|---|
| Buyer's premium (20%) | £100.00 |
| VAT on premium (20%) | £20.00 |
| Online bidding surcharge (3%) | £15.00 |
| Estimated true cost | £635.00 |
That is £135, or 27%, above the hammer price. If the sale also charges VAT on the hammer price, fixed lot fees, collection or delivery, add those too. Always use the published terms for the specific auction.
Auction commission fees and other costs explained
UK auction costs are made up of several separate charges. Check each one in the catalogue before setting your maximum bid.
Hammer price
The winning bid before fees. Most percentage charges are calculated from this amount.
Buyer's premium
The auction commission fee paid by the buyer, usually a percentage of the hammer price. It is separate from the seller's commission.
VAT
VAT is commonly added to the buyer's premium and may also apply to the hammer price or other charges, depending on the lot and sale.
Other auction costs
Online bidding surcharges, fixed lot fees and collection or delivery can all increase the final amount you pay.
How to compare auction commission rates
There is no standard UK auction commission rate. “Commission” may mean the buyer's premium or the separate seller's commission, so compare the full amount you would pay rather than one headline percentage.
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Find the buyer's premium
If you are bidding, this is the relevant commission rate. Check whether the catalogue shows it including or excluding VAT and whether a minimum charge applies.
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Check the VAT treatment
Look for VAT on the premium, then check whether VAT also applies to the hammer price or another charge for that specific lot.
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Add bidding and fixed fees
Include any online platform surcharge, fixed lot fee and collection or delivery cost. These can make two sales with the same buyer's premium cost different amounts.
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Compare the total in pounds
Enter every published charge in the calculator above. The estimated true cost and percentage above hammer give you a like-for-like figure before you bid.
Common questions
How do I calculate auction fees in the UK?
Add the buyer's premium to the hammer price, then add any VAT on the premium, VAT on the hammer price, online bidding surcharge, fixed lot fees and delivery. Use the rates in the auction house's terms for that sale.
How much are auction fees in the UK?
There is no single UK auction fee rate: the total depends on the auction house, sale and lot. Add the published buyer's premium, VAT, online bidding surcharge, fixed lot fees and collection or delivery costs to the hammer price. The calculator above shows the total for the rates in your catalogue or conditions of sale.
Are auction commission rates the same across UK auction houses?
No. Auction commission rates and charging structures vary by auction house, sale, bidding platform and lot. Buyers should compare the buyer's premium, VAT treatment, online bidding surcharge, fixed fees and collection or delivery as one total in pounds.
Is VAT charged on auction fees?
VAT is commonly charged on the buyer's premium and may apply to the hammer price or other charges depending on the lot and sale. Check the auctioneer's catalogue and conditions of sale.
What is a buyer's premium?
The buyer's premium is a percentage fee charged by the auction house on top of the winning hammer price. It is separate from the seller's commission.
What auction commission fees does a buyer pay?
Buyers usually pay a buyer's premium calculated as a percentage of the hammer price. VAT is commonly added to that premium, and online bidding surcharges, fixed lot fees and collection or delivery costs may also apply. The seller's commission is a separate charge paid by the seller.