What Is a Buyer’s Premium?
A buyer’s premium is a commission charge added by an auction house to the hammer price of every lot. When bidding at auction, the final price you pay is the hammer price (the winning bid) plus the buyer’s premium, plus VAT on the premium.
Clumber Auction House — Our Rate
15% + VAT
Buyer’s Premium on All Lots
Buyer’s Premium on All Lots
Example Calculation
| Breakdown | Amount |
|---|---|
| Hammer Price (winning bid) | £100.00 |
| Buyer’s Premium (15%) | £15.00 |
| VAT on Premium (20%) | £3.00 |
| Total Payable | £118.00 |
Why Do Auction Houses Charge a Buyer’s Premium?
The buyer’s premium is the primary revenue source for auction houses. It covers the cost of cataloguing, photography, specialist expertise, marketing, saleroom overheads, and the online bidding infrastructure. It means consignors (sellers) receive the full hammer price of their lots.
How Does Clumber Compare?
| Auction House Type | Typical Buyer’s Premium |
|---|---|
| Major London Auction Houses | 25%–30% + VAT |
| Regional Auction Houses (UK) | 18%–25% + VAT |
| Clumber Auction House | 15% + VAT |
| Online-Only Platforms | 20%–25% + VAT |
At 15%, Clumber’s buyer’s premium is one of the most competitive offered by a specialist UK auction house — ensuring more of your money goes towards the lots themselves.
Is VAT charged on the hammer price?
No. VAT is only charged on the buyer’s premium, not on the hammer price itself for private sales. Lots marked with a † symbol are sold by VAT-registered vendors and may have additional VAT implications — these are clearly marked in the catalogue.
Do I need to know the buyer’s premium before I bid?
Yes — always. Factor the buyer’s premium into your maximum bid before the sale. If your budget for a piece is £120 total, your maximum bid should be around £100 (£100 + £15 + £3 = £118).