Dual Nationality
 

OK, so basically this is the situation... I was born in the UK (1990) and have lived here ever since. From birth however, I'm an American citizen (due to my mother at the time being an American citizen). I became a British citizen when I was 4 years old (the same time both my parents became British citizens), and hence have dual citizenship.

I was just wondering, would it be possible to pass both my nationalities on any children that I may have? What restrictions are there?

Thanks.

Re: Dual Nationality
 

UK citizenship is either "by descent" or "otherwise than by descent". UK citizens "by descent" cannot normally pass on UK citizenship to children born abroad.

It's my understanding that you acquired UK citizenship through naturalization so therefore are a UK citizen "otherwise than by descent". If so, you can pass on UK citizenship to any children born abroad (they would then be UK citizens "by descent"). Of course, if your children are born in the UK, this becomes a non-issue as they would be UK citizens "otherwise than by descent" (in their case, by birth in the UK).

In terms of your US citizenship, you need to have lived in the US for a period of time before you can pass on US citizenship. This link explains it:

http://www.uscis.gov/portal/site/usc...00b92ca60aRCRD

Re: Dual Nationality
 

Also, if you are an American citizen you should be filing tax returns each year (Americans are required to report world-wide income; not necessarily that you will be taxed on the amount that you earn). Also if you are male and between the ages of 18 and 26(?) you must register for Selective Service (the "draft"). HTH!

Re: Dual Nationality
 

Is the above true for overseas citizens? I have never lived in the USA, and am currently a university student in the UK, paying home fees as a British citizen. I've never been asked about tax returns, drafting etc. (I'm not even sure what "Selective Service" is! I'll have to Google it). I have always present myself as a British citizen when travelling out of the country (UK) and when travelling in Europe and even when travelling to other countries, as I did recently when I travelled to Kuwait. I only ever use my US passport when entering and exiting America which I last did in 2004!

Re: Dual Nationality
 

It's true for all US citizens.

However, the failure to register for Selective Service will only block your right to some federal benefits such as student loans, while failing to file a tax return usually only comes into play should you try to sponsor a relative for an immigration benefit. Of course, practices could change at any time.

Re: Dual Nationality
 

You don't get told these things. The onus is on you to find out, know and comply.

Good luck and welcome to BE :)

Re: Dual Nationality
 

I don't think any children you have will be US citizens if they are born outside the US because you have not lived in the US yourself. Look at the citizenship rules by descent for children born after 1986.

You have fallen foul of the bizarre US tax system which taxes the worldwide income of it's citizens wherever they reside. The good news is you probably owe no tax to the US as you can exclude foreign income up to $95k and take credit on your US taxes for UK tax that you pay. However, the bad news is that you have to file US taxes each year and there are fines for failing to disclose foreign accounts amounting to $10k or more, this is call FBAR legislation, and further fines at a higher threshold, FATCA legislation. Also the way the US taxes foreign pensions and investments is complicated and causes great headaches for US expats so your UK financial life will become a lot more difficult from now on. I encourage you to sort this out asap and educate yourself about your US tax obligations. Go to one of the US expat specialist firms and for a few hundred pounds you should be able to sort things out.

http://www.expatriatetaxreturns.com/

also look here

http://talk.uk-yankee.com/index.php?board=11.0

Re: Dual Nationality
 

Yep - and some people don't even know that they are US citizens! Some pay taxes (elsewhere) and die without ever finding out!

Re: Dual Nationality
 

Yes... and they are breaking US law all their lives, stupid isn't it!

Re: Dual Nationality
 

Thanks nun. I shall look into this when I have more time. Currently, I'm a student with no money to my name. So, I guess my financial life will become more burdensome when I start earning.

Dual nationality is more a curse if anything else!

Re: Dual Nationality
 

Yes, you're right. I would need to live in the US for at least 5 years. Thanks for the links.

Re: Dual Nationality
 

You should look into this asap. You need to understand your US tax situation to make sensible financial decisions and you need to make sure you have no US tax obligations. If you had $9.5k or above in earned income you must file a 1040. Even if you had less than that I'd make knowing your exact status a priority.

Re: Dual Nationality
 

Yes my husband was in a similar situation. He filed a lot of very late tax returns when he sponsored me to move to the US. It's not something he'd care to do again. I'd definitely recommend filing each year.

Re: Dual Nationality
 

YOU would have to live in the US for 5 years, but perhaps your American mother can transmit citizenship?

It's not mentioned in the links above, but I remember hearing there was a way for American grandparents to transmit citizenship, IF (and only if) the American citizen grandparent spent 5 years in the USA, with two of those years being after the age of 14. Here's a link on Epeditious Naturalization:

http://honduras.usembassy.gov/exped-natural.html

Re: Dual Nationality
 

Yes, you are required to do many things, including:

* File a tax return every year (though note, you probably won't owe anything due to credits and exclusions).
* File a FBAR bank account report if you have > $10,000 USD in overseas bank accounts (either one account or multiple accounts =>$10k)
* File an FATCA if you have > about $250k USD.
* File various forms if you own > 10% of a foreign company.
* Register for military service
* Enter and leave the United States ONLY on your US passport and not any others.

Do you already have a US passport?

Re: Dual Nationality
 

Selective Service can be found at http://www.sss.gov
Assuming you are male, you have to register. If you don't, you are breaking the law and it may cause problems for you later on.

They will accept a late registration as long as you have not turned 26. Most people in your situation only come and ask when they are 26 or 27 and it's too late.

If you have a British registration certificate then you should read what it says for the section of the British Nationality Act 1981 under which you were granted British citizenship. If it says section 1(3) then you are British otherwise than by descent. Or perhaps it says something else?

On taxes, you may not have any tax to pay for now but you should file U.S. federal tax returns anyway to make sure the IRS knows your liability is zero. And going forward, you will need to keep your investments quite simple in order to avoid complexities with American taxes. Owning stock and real estate directly doesn't usually cause complications but it's generally advisable to avoid mutual funds (unit trusts) for example and you don't really get to make use of U.K. tax free savings like ISAs because they are not tax free to the United States.

Re: Dual Nationality
 

Definitely avoid UK stocks and shares ISAs, They are taxed by the IRS as foreign grantor trusts and will probably own Passive Foreign Investment Corporations (PFIC) ie unit trusts which you should avoid. But a cash ISA is a good investment. It grows UK tax free, but you will have to declare any interest on your US taxes.....however you might well have no US tax to pay if you have enough UK tax credits.

Re: Dual Nationality
 

Yes, I do.