The sale of your home in the UK will be taxed the same as if you sold property here in the United States.
If the home you are selling in the UK qualifies to be treated as your primary residence, then you would be allowed to exclude $250,000 (or $500,000 if married filing a joint return), from any gain you had from the sale. In order to qualify as your primary residence, you must have owned the home for at least 2 years and you must have lived in the home for at least 2 of the last 5 years preceeding the sale.
So it would depend on just exactly you moved out of that home and when you sell it as to whether or not you will meet the use test of having lived there for 2 of the last 5 years.
If you cannot meet the rules
which qualify this to be your primary residence, then any gain you have from the sale would be taxed as a long term capital gain, and that tax
rate is currently capped at 15%. Using the sale proceeds to purchase another home here in the US or anywhere else would not reduce or eliminate this tax.
You would, however, be allowed a credit for any tax which you also might have to pay to the UK on the sale of this property.
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Thank you kshand.