The Surprising Number of UK Citizens Renouncing US Citizenship
Why More Americans in Britain Are Cutting Ties with the United States
“I Didn’t Want to Do It, But I Had To”
When Sarah left New York for London in 2008, she anticipated exchanging chaos for culture, and skyscrapers for strolls along Hyde Park. She could never have pictured that fifteen years later, she’d be across from an American consular official in London, voluntarily relinquishing the passport she had carried throughout her life.
“I did not despise the U.S.,” she said. “But I could no longer manage the perpetual stress of making U.S. tax payments. It was too much.”
Sarah is not alone. Recently, increasing numbers of Americans resident in the UK, some now British citizens themselves, have opted to relinquish US citizenship to avoid what they describe as an “unworkable system.” And though the choice is personal, the motivations are remarkably consistent.
The Numbers Don’t Lie
Although the U.S. doesn’t release real-time renunciation data by country, public documents indicate that hundreds of Americans relinquish their citizenship annually, with the UK consistently one of the top places for renunciations.
In reality, a significant portion of those surrendering are dual citizens or long-time expats. Individuals who’ve established complete lives overseas and are increasingly irritated by the drag of continued U.S. tax reporting, having little or no presence in the country left.
The High Price of Refusing to Let Go of a U.S. Passport
So why would one relinquish one of the most privileged passports in the world? The response, for many, is fatigue from compliance.
Here’s what long-term US expats in the UK need to do every single year:
- File a U.S. federal tax return, even if they don’t owe any money
- Report all foreign bank accounts (FBAR) worth more than $10,000
- Disclose investments under FATCA regulations
- Report UK pensions, which can be viewed as foreign trusts by the IRS
- Pay for expat tax preparation, usually hundreds or thousands of pounds a year
And this on top of tax reporting to HMRC, the UK tax authority.
Some find it too much hassle. One pair, both American-born and residing in Manchester since 2002, called it “a second full-time job just to stay compliant.”
A Legal but Lasting Farewell
Renouncing U.S. citizenship is a legal and permanent measure. It entails:
- Having an appointment at a U.S. embassy or consulate
- Handing over a $2,350 fee (the world’s highest renunciation fee)
- Filling out forms, such as Form 8854, to report your assets and income
- Demonstrating that you’ve complied with the past 5 years of U.S. tax returns
If you cross specific thresholds of wealth or have incomplete tax returns, you’ll be considered a “covered expatriate” and get hit with an exit tax on unrealized gains.
It’s serious stuff, but for many, it’s a source of deep relief.
The Emotional Toll
Despite the financial and bureaucratic logic, renouncing isn’t an easy emotional decision. Many expats describe a deep sense of guilt, even grief.
“You grow up thinking your passport is part of your identity,” said Marcus, a dual national who renounced after nearly two decades in the UK. “But I couldn’t plan my future or protect my family financially if I kept it.”
That inner turmoil is typical. A lot of renouncers aren’t bitter, they’re just burned out.
What about Social Security and Visas?
Here’s what you should know:
- If you’ve contributed to Social Security, you can still collect benefits after renouncing.
- You don’t forfeit your U.S. property, investments, or retirement accounts.
- You can still travel to the U.S. as a tourist on a visa or the Visa Waiver Program (ESTA), just like any other foreign national.
So while you lose the ability to vote or live in the U.S. without a visa, you don’t lose everything.
The Bigger Picture
Renouncing isn’t just about avoiding tax paperwork. For many, it’s about moving forward.
Parents wish to protect their foreign spouses and children from intricate U.S. reporting requirements. Businesspersons wish to grow their UK-based companies without being weighed down by U.S. disclosure regulations. Retirees wish to organize their estate without setting off tax pitfalls worldwide.
It’s not about infidelity, it’s about pragmatism.
Conclusion: Not About Leaving, But Letting Go
The increasing rate of renunciations from the UK is not a revolt. It’s a realization that maintaining U.S. citizenship while residing abroad long-term has actual expenses, and at times, surrender is the only way to actually leave behind.
For expats such as Sarah, Marcus, and countless others, renouncing was a choice that was made with great consideration, not to abandon their American nationality, but to become masters of their lives overseas.
As increasingly more U.S. citizens move permanently to the UK, anticipate this unobtrusive trend to continue. And for many of them, it’s less about leaving behind something and more about approaching peace of mind.
FAQs: Renounce US Citizenship
Do I continue to owe U.S. taxes after relinquishing?
No. If your renunciation is accepted and you’ve submitted Form 8854, you’re no longer bound by U.S. tax laws, unless you’re defined as a “covered expatriate,” which could include an exit tax.
May I continue to travel to the U.S. after renouncing?
Yes. Most ex-citizens enter the U.S. on ESTA (within the Visa Waiver Program) or apply for a visitor visa.
Will I forfeit my Social Security benefits?
No. If you qualify, you may continue to receive Social Security as a foreign-residing non-citizen.
Do I have to be tax compliant prior to renouncing?
Yes. You will have to be in full compliance with your previous five years of U.S. tax returns to prevent extra penalties.
Is renunciation irreversible?
Yes. After it’s executed, it’s legally binding and cannot be undone.
