Frequently Asked Questions
Some of the common questions we get asked. Feel free to contact us should you have a question that is not listed below.
Acceptable forms of identification and proof of bank account
Acceptable Identification: - Passport - UK ID - UK Drivers License For companies we accept the company registration document and for trusts we accept the trust deed Acceptable Proof of Bank Account: - Bank statement dated within the last 3 months - An account opening letter from the bank
How can I sell my fractions?
Currently you will have to hold on to your fractions until the gallery finds a suitable buyer for the entire art piece. Fractiv will introduce a Secondary Market for buyers in permitted locations, which will facilitate selling of fractions to buyers. This is expected to come in future developments
How will I be taxed once fractions are sold or returns distributed?
Fractiv does not provide tax advice. We recommend that buyers obtain their own tax advice as every person has specific tax circumstances. Generally, income and profits generated from your investment can be subject to either income tax or capital gains tax (depending on the individual investor and the specific structure of the investment). Artworks are not income-generating during the period they’re held. If you are unsure about your tax or other legal requirements, please speak to a professional advisor.
Is there a minimum purchase amount?
The minimum investment is 1 fraction of the artwork which equates to a percentage of the overall ownership of the artwork. This percentage is outlined in more detail under information provided for each individual piece.
How do I reinvest/withdraw profits from sales with Fractiv?
Profits will be paid out directly to your bank account provided upon registration. We are currently working on a feature to provide you with an online wallet that will allow you to manage your art portfolio on the platform. This will be part of the next version upgrade so watch this space!!
How long does it take for the gallery to find a buyer for the art piece
This depends on the art piece, the artist and market demand. We will provide an estimated resell time for each piece in the description of the piece. In general, we advise that buyers should be willing to hold their fractions for 2 to 5 years.
What decisions to buyers get to make?
Fractiv will communicate with buyers regarding any rental opportunities, sale offers etc Buyers will participate in a vote pertaining to any decisions that need to be taken.
Fractiv / General
Can I list my artwork for sale on Fractiv?
We welcome any owner who wants to unlock liquidity from their collections to contact our Fine Art Team. This includes individual collectors, galleries, institutions, and artists. Please reach out if you're interested in listing your artwork on the Fractiv platform.
How is the art stored and insured?
All art is stored and insured using the galleries current storage and insurance providers.
Who pays for the storage and insurance?
The storage and insurance is paid for upfront by the gallery and the gallery is then reimbursed via an annual dilution of fractions of the artwork. The annual dilution amount is approximately 1% per annum.
How is the artwork on Fractiv selected?
Galleries propose artworks to be listed on Fractiv. Our Fine Art Team uses third party industry experts to obtain independent valuations and analysis on the growth potential. Our team examines metrics such as the artist’s market track record, recent price velocity and momentum, and the size of their international collector base when making investment decisions. Fractiv has the final say on which artworks can be listed on the platform.
How is the art listed on Fractiv valued?
We use independent third party services to obtain the price of the artwork. We have not independently verified third-party information The art market data used on the Fractiv platform involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such data. While we are not aware of any material misstatements regarding any market, industry or similar data presented herein, such data was derived from third party sources and reliance on such data involves risks and uncertainties.
Does Fractiv sell NFTs?
At the moment, Fractiv does not sell NFTs. NFTs are digital assets. Fractiv enables buyers to participate in the art market by purchasing interests in high value/high growth, physical artworks.
What does Fractiv charge?
Fractiv does not charge the buyers of fractional pieces of artwork. The platform is completely free for buyers. Fractiv charges the galleries a service fee to facilitate their listings.