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.
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.
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.