Re: Giving up Green card - exactly what are the impacts
 

That's my understanding - we go back this year, give up the green cards and file US taxes for 2014 only.

Re: Giving up Green card - exactly what are the impacts
 

My favorite abandonment of LPR case is United States v Yakou.

An I-407 can be filed with the Embassy in London. OP appears to know about the expatriation tax but I've heard that seeking a "sailing permit" may not be such a bad idea.

[I like the idea of a "sailing permit" prior to boarding a turbo-fan airliner.]

Re: Giving up Green card - exactly what are the impacts
 

The sailing permit is very helpful advice. In reading the regulations am I correct in thinking that a tax year will be any time you are a resident in the year. So our clock started ticking in March 2009 and January 1st 2016 will then be 8 years??

Also my W2 is around $200k but net worth is certainly below $2mm. When the legislation states "Your average annual net income tax liability for the 5 tax years ending before the date of expatriation is more than the amount listed next.
a. $139,000 for 2008, etc, etc"
Does this mean W2 income of more than $139k or tax due of more than $139k. This will be important to know so any help appreciated.

Re: Giving up Green card - exactly what are the impacts
 

You can be sponsored in? But what happens if the U.S. citizen spouse has died, or there's been a divorce, or the immigration rules have changed (has happened in the U.K.), or there is some other reason why the person might have become inadmissible to the United States?

Re: Giving up Green card - exactly what are the impacts
 

We were sort of in the same scenario, so just took out citizenship and left. Have been out of the US for 3 yrs now.

Re: Giving up Green card - exactly what are the impacts
 

If you want to return to the UK and hold a GC I would get all your US finances sorted out. Sell things with the potential for capital gains and make sure you
understand HMRC's Reporting Funds rules for any US investments you keep. File a 2063 or 1040C and get a sailing permit if required.

Once in the UK I would complete I-407 and mail it to the US Embassy

http://london.usembassy.gov/dhs/uscis/abandon.html

then (if necessary) I'd file 8854 with the IRS. Finally I'd file a 1040NR as a dual status alien for the part of the year that you held the GC. If you have
US source income you will have to file 1040NR each year unless you can file a W-8BEN and avoid US filing using treaty provisions.