Can Family Sharing work if I live in the United States and my daughter lives in England ?

HI Gardener6811,

Thank you for using the Apple Support Communities! That is correct as noted in the guide below:

Change Purchase Sharing settings in Family Sharing on Mac

Note: To share purchases, family members must be in the same Apple ID country or region. If a family member changes their Apple ID country or region, that person might lose access to other family members’ purchases, and installed apps that were shared from other family members might not work. 

Hope this helps!

Have a great day.

Only if she was also using an account also set to the USA, but she should technically only have her account set to the UK if that is where she resides.