UK Seller's Guide to FIRPTA
UK residents who sell a DVC contract face the same 15% FIRPTA withholding as any other foreign seller. But you also have obligations to HMRC and benefits from the US-UK tax treaty that affect your overall tax outcome.
The US-UK Tax Treaty
Article 13 of the US-UK Convention for the Avoidance of Double Taxation allows the United States to tax gains from US real property. The treaty does not exempt UK sellers. What it provides is Double Taxation Relief: when you report the DVC sale on your UK Self Assessment, you claim a credit for the US tax you paid. If the US tax equals or exceeds your UK CGT liability, you owe nothing extra to HMRC on that gain.
Reporting to HMRC
UK residents must report the disposal of overseas assets on their Self Assessment, even if no UK tax is ultimately owed. The DVC sale goes on your capital gains pages. Convert all USD amounts to GBP using the spot exchange rate on each transaction date — the date you originally purchased, and the closing date of the sale.
The Annual CGT Allowance
The UK annual CGT allowance (£3,000 for 2024/25) can shelter a small gain entirely. If your DVC gain converted to GBP falls within the allowance, you may owe no UK CGT at all. And the US tax was almost certainly more than that, so after claiming Double Taxation Relief, your HMRC bill may be zero.
Getting Your FIRPTA Refund
To recover your excess withholding, file Form 1040-NR after December 31 of the year your sale closed. A valid UK passport satisfies the ITIN application (Form W-7) requirements on its own.
For a complete guide with worked examples for UK sellers, see our UK DVC sellers FIRPTA guide.
