Readers’ forum: Tax implications of repatriating art

My client Mr B is a British national and a high net worth individual. He is a successful insurance broker and has lived in different countries over the course of his career. He has been living in the US for the past five years. He owns a valuable painting by a well-known British artist currently held in a private collection in Madrid. Mr B plans to import the painting into the UK to sell it at a prestigious London auction house. The painting is valued at £2m. Mr B is not VAT-registered in the UK and has no other UK business interests. He intends to sell the painting personally not through a company. The auction house will charge a commission on the sale.

What are the UK tax implications of importing the painting into the UK? Are there any VAT or customs duties? Would VAT be...