Renouncing US Citizenship
#16
DE-UK-NZ-IE-US... the TYP
Joined: Mar 2010
Posts: 2,855
Re: Renouncing US Citizenship
How do they know that he's a US citizen? Is that something you have to declare upon opening an investment account?
I'm a dual myself, and hope to return to the UK to live after an adult lifetime based in the US, so I know banking and taxes are going to be complicated.
I'm a dual myself, and hope to return to the UK to live after an adult lifetime based in the US, so I know banking and taxes are going to be complicated.
https://www.theguardian.com/business...ccounts-frozen
#17
Re: Renouncing US Citizenship
Do they ask for a birth certificate to open an account?
Not a problem for me personally, since I was born in the UK, but thinking of the OP's friend.
#18
DE-UK-NZ-IE-US... the TYP
Joined: Mar 2010
Posts: 2,855
Re: Renouncing US Citizenship
But when it came in banks etc had to search their records:
https://en.m.wikipedia.org/wiki/Fore...Compliance_Act
#20
Re: Renouncing US Citizenship
I believe many (no US) financial institutions now ask you outright on forms if you are a “US person”... so they can show compliance... not sure what the local penalty would be for not disclosing the truth.
But when it came in banks etc had to search their records:
https://en.m.wikipedia.org/wiki/Fore...Compliance_Act
But when it came in banks etc had to search their records:
https://en.m.wikipedia.org/wiki/Fore...Compliance_Act
The US is serious about collecting its money, isn't it.
#21
BE Forum Addict
Joined: Apr 2011
Location: The Shire
Posts: 1,117
Re: Renouncing US Citizenship
First, no, a lawyer is not required normally. Contact the US Embassy in London (or US Consulate in Edinburgh), fill out the relevant forms, go to the Embassy or Consulate, pay $2,350, and make an oath to the US flag (seriously). You've renounced.
Only problem - US Embassy has not allowed renunciations since April 2020, although things may change soon (maybe).
Some comments on above posts:
Your friend is an "Accidental American". Google the term and you'll find a number of sites discussing renunciation. There are also some groups on Facebook.
Renunciation is not related to US tax. They are two separate issues. You can renounce and go your merry way, but you live with a threat of the IRS for the rest of your life. It's not unheard of for someone to renounce without filing tax returns. If you want to do it properly, then 5 years of returns and six years of FBARs will suffice. For the last year, a form 8854 is required. Much depends on the persons gross wealth at time of renunciation. For that reason, some can't afford, financially, to renounce.
The problem is your friend is in the UK. Most UK financial institutions ask pointedly on any application to open a new account "Are you a US Citizen?". I've been trying to open a new account myself and have run into some resistance. Although it's rare, others blankly refuse USCs resident in the UK even if they are also a UKC (dual). Goldman Sachs refuse USCs on their Marcus account in the UK (which has one of the best rates of interest). Being a USC in the UK will severely limit your options for investing. For one Savings bank, the wording was "Are you a US citizen?" That part was easy - YES. Then: "I am resident in the UK for tax purposes and do not have any liability to pay tax in any country other than the UK". YES/NO? There is no way a dual USC/UKC can answer that question with a yes or a no, so I questioned it. I wasn't investing that much, £20,000, and after a month I had a phone call back which said OK, but you have to deposit immediately or otherwise forget it. I elected to forget it..
#22
Forum Regular
Joined: Jul 2020
Posts: 162
Re: Renouncing US Citizenship
As an aside, if he renounces U.S. citizenship and ever finds his way back into the U.S. he will be forever banned from owning a firearm even if he is subsequently naturalized a U.S. citizen again. Renunciation has consequences, some often not foreseen.