Fantastic find and great that you now have your money. Note that, although auction prices are taken into account as part of the Treasure Committee’s valuation, the actual amount is usually considered to be what would be an agreeable price between a willing buyer and a willing seller. That is, not the price that
might be realised in an aggressive competitive auction.
You’re correct that you’re not liable for Capital Gains Tax in the UK. Non-residents generally only pay CGT on profits relating to sale of property, land, or the rights to assets that derive at least 75% of their value from UK land.
My understanding of your situation would be this:
In the US, collectibles are considered ‘’alternative investments” by the IRS and include things like
art, stamps, coins, cards, comics, rare items, antiques, and such. If collectibles are sold at a gain (and effectively you have sold a found item to the UK museum services at a gain since you found it and paid nothing for it), you will be subject to a
long-term capital gains tax rate of up to 28%, if disposed of after more than one year of ownership (which doesn’t apply in your case). Collectibles sold at a gain are subject to
ordinary income tax rates if held for one year or less (as in your case). You are entitled to deduct costs (if you incurred any) from the amount gained (but obviously not the costs of your trip to the UK).
You are not entitled to any foreign income exclusions because (I presume) you don’t have a ‘tax home’ in the UK.
This from the United States IRS website
https://www.irs.gov/taxtopics/tc409#:~:text=Net capital gains are taxed,than 15% for most individuals [edited to remove some non-relevant info]:
Net capital gains are taxed at different rates depending on overall taxable income, although some or all net capital gain may be taxed at 0%. For taxable years beginning in 2024, the tax rate on most net capital gain is no higher than 15% for most individuals.
- A capital gains rate of 0% applies if your taxable income is less than or equal to:
- $47,025 for single and married filing separately;
- $94,050 for married filing jointly and qualifying surviving spouse; and
- $63,000 for head of household.
A capital gains rate of 15% applies if your taxable income is:
- more than $47,025 but less than or equal to $518,900 for single;
- more than $47,025 but less than or equal to $291,850 for married filing separately;
- more than $94,050 but less than or equal to $583,750 for married filing jointly and qualifying surviving spouse; and
- more than $63,000 but less than or equal to $551,350 for head of household.
However, a capital gains rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15% capital gain rate.
There are a few other exceptions where capital gains may be taxed at rates greater than 20%:
- Net capital gains from selling collectibles (such as coins or art) are taxed at a maximum 28% rate.
Where to report
Report most sales and other capital transactions and calculate capital gain or loss on Form 8949, Sales and Other Dispositions of Capital Assets, then summarize capital gains and deductible capital losses on Schedule D (Form 1040).
