If you’re a US citizen living in the United Kingdom and thinking about renouncing your citizenship, you’re not alone. Over the past decade, a growing number of Americans abroad have chosen to give up their passports—often due to the complexities and costs of ongoing US tax reporting.
But how in fact does one relinquish US citizenship in the UK, and what are the implications, fees, and long-term effects? This guide takes you step by step through the process with plain-English descriptions, real-world tips, and answers to the most frequent questions.
The Problem: Living Overseas, Taxed as If You Never Left
US citizenship entails a lifetime duty to file yearly tax returns and financial reports—irrespective of your place of residence. These are:
- Filing a US tax return (even if you pay tax in the UK)
- Reporting foreign bank accounts (FBAR)
- Disclosing non-US investments and pensions
- Complying with complicated forms such as FATCA, Form 8938, and PFIC rules
For American expats who’ve made their home here in the UK permanently, married residents, or established their careers abroad, this never-ending tax is often felt as an unfair and unnecessary burden.
The Solution: Renouncing US Citizenship While Living in the UK
Renouncing your citizenship from the UK is a serious decision, but for others, it’s the only choice that brings them financial freedom and peace of mind. The procedure isn’t complicated, but it is lengthy, and it involves some fees and repercussions you need to be ready for.
Step-by-Step: How to Renounce US Citizenship from the UK
- Ensure you’re a dual citizen (or possess an additional nationality)
You can’t renounce if you don’t already have a second citizenship. Statelessness is prohibited. - Book an appointment at the US Embassy in London (or consulate in Belfast or Edinburgh)
Renunciations have to be in person. The embassy will typically require you to fill out a preliminary questionnaire before booking. - Gather your documents
- You’ll need:
- Your US passport
- Your UK passport or evidence of UK citizenship
- Filled-out Form DS-4079 (Questionnaire for Determining Potential Loss of US Citizenship)
- Any other forms the embassy requires
- Attend your renunciation interview
During this appointment, you’ll be asked to sign a declaration that your decision is voluntary and informed. You’ll then take an oath of renunciation before a consular officer. - Pay the fee
As of the current time, the fee for renunciation is $2,350 USD. This should be paid upfront before your documents are processed. - Wait for your Certificate of Loss of Nationality (CLN)
When approved by the State Department in the US, you’ll receive your CLN through postal mail. This is the formal verification that you are no longer a US citizen.
What About Exit Tax?
The Exit Tax, also referred to as the Expatriation Tax, is imposed on some people who renounce. You’ll be affected by it if:
- Your net worth is $2 million USD or higher
- Your U.S. tax liability for the last 5 years averages over a specified amount (approximately $190,000 in 2024)
- You did not file and certify compliance with US filings of taxes for the 5 preceding years
How It Works:
The IRS assumes you have sold all of your possessions the day before you renounce. You could be taxed on unrealized gains above a minimum amount (around $821,000 in 2024). Pensions, trusts, and deferred compensation have special rules.
Real-Life Insight
“I’d lived in the UK for more than 15 years, married to a Brit, and paying all my taxes here. But every year, I had to spend hundreds to file US returns that usually showed I owed nothing. It didn’t make sense anymore.”
— Sarah M., former US citizen living in Manchester
People Also Ask (PAA)
- How long does renouncing US citizenship in the UK take?
It takes that long depending on embassy availability, but from the time you get an appointment until the time you receive your CLN, 3 to 6 months usually passes.
- Can I still visit the US after renouncing?
Yes. You will need to obtain a visa or use the Visa Waiver Program (ESTA) if you are eligible. Renunciation does not exclude you from visiting the US as a tourist.
- Will I still owe US taxes after I renounce?
Only if you’re subject to the Exit Tax or have outstanding tax obligations. Once you’re officially expatriated and have filed your final US tax return (Form 8854), your ongoing obligations end.
Frequently Asked Questions
- What’s the difference between renunciation and relinquishment?
Renunciation is a willful act—you go to the embassy and take an oath. Relinquishment can occur passively, like acquiring another nationality with the intention of forgoing your US citizenship. The procedure is the same, but relinquishment can sometimes skip the $2,350 fee.
- Can I regain my US citizenship after renouncing?
It’s very rare and tough. It’s not assured. Only renounce if you’re absolutely certain.
- Do I continue to file FBARs and US taxes after expatriating?
You must file a final year return and attest five years of previous tax compliance. Following that, your reporting requirements cease—unless you maintain US-sourced income.
Important Things to Consider Prior to Renouncing
- Consider family: If you have US citizen children, their reporting requirements will not cease.
- Review your pensions and investments: Certain US retirement arrangements or trusts can have tax repercussions if you renounce.
- Carefully plan your timeline: Renouncing earlier than satisfying tax compliance can result in penalties or being a “covered expatriate.”
Final Thoughts
Surrendering US citizenship while in the UK is a big personal and financial choice. For some, it’s a means of regaining financial simplicity and liberty after many years of dealing with a complex, dual-tax system. But don’t do it in haste.
Do your homework, know the process, value your possessions, and consult a cross-border tax expert before proceeding. Renunciation can be a fresh start—a clean break—not a tax mess when properly prepared.
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