I Renounced My U.S. Citizenship in the UK—Here’s What Happened Next

Introduction

Renouncing U.S. citizenship is not just a bureaucratic step—it’s a deeply personal, irreversible act. For many Americans in the United Kingdom, juggling both IRS obligations and UK tax rules can become overwhelming. Add to that banking difficulties under FATCA, and the decision to pursue U.S. citizenship renunciation feels like the only option. But what happens once you take that step? Here’s a detailed look at the process and the consequences.

Why Americans in the UK Choose Renunciation

Expats who renounce often cite:

• Double taxation stress – even with treaties, the filing burden remains heavy.
  
• Banking challenges – many UK banks ask for FATCA compliance, which complicates accounts.
  
• Simplifying finances – avoiding yearly IRS reporting obligations.
  
• Emotional reasons – fully embracing British citizenship without legal ties to the U.S.
  

The Renunciation Process in the UK

1. Book an Embassy Appointment – This can take months due to demand.
   
2. Prepare Forms – Form DS-4079 (to determine eligibility) and renunciation paperwork.
   
3. The Interview – Conducted at the U.S. Embassy in London or consulates in Belfast/Edinburgh. You’ll swear an oath confirming the decision.
   
4. Pay the Fee – Currently $2,350, one of the highest renunciation fees in the world.
   
5. Receive the CLN – The Certificate of Loss of Nationality is your official proof.
   

Tax Consequences of Renunciation

Renouncing doesn’t mean you escape past obligations. You must:

• File a final U.S. tax return (dual-status).
  
• Submit Form 8854 declaring your expatriation.
  
• Pay the Exit Tax if considered a “covered expatriate.” This applies if your net worth exceeds $2 million or if you haven’t complied with U.S. tax rules for the last five years.
  

Life After Renunciation

• Banking – Easier access to accounts since you’re no longer subject to FATCA reporting.
  
• Travel – You’ll need a visa or ESTA to visit the U.S. (just like other Brits).
  
• Identity – Many report relief, but some feel a sense of loss cutting ties with their birthplace.
  
• Tax Relief – No more U.S. filing obligations; you only follow UK tax rules.
  

FAQs About Renouncing U.S. Citizenship in the UK

1. Can I still visit the U.S. after renunciation?
Yes, but you must apply for ESTA or a visa.

2. Is renunciation reversible?
No. It’s a permanent act under U.S. law.

3. Do I need British citizenship first?
Yes, or another nationality—you cannot become stateless.

4. How long does the process take?
Anywhere from 6 to 12 months, depending on embassy scheduling.

5. Does everyone pay the Exit Tax?
No. Only those classified as “covered expatriates” with high wealth or non-compliance issues.

Conclusion

Renouncing your U.S. citizenship in the UK is life-changing. It frees you from the IRS, but it comes with costs—financial, legal, and emotional. If you’re considering U.S. citizenship renunciation, speak with a tax advisor to ensure you meet obligations before making the leap. For many expats, though, the decision ultimately brings peace of mind and a simpler financial future.