Does anyone know how to denounce their British Citizenship

[Leaannb]

My 18 yo who is a dual citizen of the UK and US would like to denounce his British citizenship due to tax reasons. Any idea how?

I didn't think you had to. The Americans make you pay tax wherever you live but the Brits don't, do they?

Having dual nationality is a great thing IMO.

A quick Google search reveals that he can apply for renunciation. Details at gov.co.U.K., however if it’s purely for tax purposes I would check if that’s actually necessary. I think it depends on how much he earns. I have dual citizenship and only pay taxes in the U.K..

www.gov.uk/renounce-british-nationality

What are the 'tax reasons'?

I think it’s residence and domicile that count for UK tax purposes which is not the same as citizenship/passport.

If he'd non-domiciled he shouldn't have to pay tax anyway.

I am always amazed at the sorts of things people use Mumsnet for.

In the time it would have taken you to type ‘denounce UK citizenship’ in google, you’d have the answer.

But instead, you type out a much wordier post on MN, hit send, and then sit and wait patiently for everyone else to do your googling for you.

That doesn’t make sense. If he’s earning money in the UK whilst living in the USA it doesn’t matter what citizenship he holds. There’s a tax treaty between the two countries. So even someone with just US citizenship would need to report overseas income earned in the UK to the IRS. He would still fall under the federal filing requirement but likely wouldn’t have to pay tax on it unless it’s over $100,000 (I believe that’s the limit).

I kept my British citizenship even though I have no intention of living in the UK again but you never know. Why burn your bridges?

British citizens have a much lower threshold for inheritance tax than Americans and it is applied to global assets. But at 18 surprised he’s thinking about that!

Renounce not denounce - only saying as it’s less judgmental ! Read your title and thought it was an act of furious flouncy disgust about something (lots to choose from right now in U.K. and us !)

@MrsTerryPratchett

I didn't think you had to. The Americans make you pay tax wherever you live but the Brits don't, do they?

Having dual nationality is a great thing IMO.

Yes they do dependant on how much time spent i country

@MerchantOfVenom

I am always amazed at the sorts of things people use Mumsnet for.

In the time it would have taken you to type ‘denounce UK citizenship’ in google, you’d have the answer.

But instead, you type out a much wordier post on MN, hit send, and then sit and wait patiently for everyone else to do your googling for you.

I have Google and keep getting different responses. Just trying to get the basic info before calling a UK solicitor tomorrow

Is he earning enough at eighteen for this to be an issue?

You don’t (he doesn’t) need a solicitor to apply for the renunciation. The link @fallfallfall posted covers it. Maybe your DS would benefit from advice, though. This doesn’t seem like a great idea. Are you the one pushing this plan?

Yes they do dependant on how much time spent i country

Renouncing the nationality wouldn't change that. In fact, renouncing UK nationality makes it more likely that income from UK sources will be taxed. For example, I an not UK resident for tax purposes but I have rental income from a UK property so I do a self assessment every year. Because I'm a UK national I can claim the personal allowance and in fact I don't have to pay tax (income below 10k). If I wasn't a UK national I wouldn't get the personal allowance.

(I know this is a simplification and tax treaties might come into it if I wasn't a UK national but nothing that would apply to me. I also agree it's rediculous I get the personal allowance but speak to your government about that one!).

@VimFuego101

What are the 'tax reasons'?

He os getting ready to move there and when he does he will have to pay taxes in both countries since he will be residing over 183 days between your tax year. He will still have to pay US taxes as well

@Nomaigai

Yes they do dependant on how much time spent i country

Renouncing the nationality wouldn't change that. In fact, renouncing UK nationality makes it more likely that income from UK sources will be taxed. For example, I an not UK resident for tax purposes but I have rental income from a UK property so I do a self assessment every year. Because I'm a UK national I can claim the personal allowance and in fact I don't have to pay tax (income below 10k). If I wasn't a UK national I wouldn't get the personal allowance.

(I know this is a simplification and tax treaties might come into it if I wasn't a UK national but nothing that would apply to me. I also agree it's rediculous I get the personal allowance but speak to your government about that one!).

He won't have any UK income while living in the UK. Only US income

@Nomaigai

Yes they do dependant on how much time spent i country

Renouncing the nationality wouldn't change that. In fact, renouncing UK nationality makes it more likely that income from UK sources will be taxed. For example, I an not UK resident for tax purposes but I have rental income from a UK property so I do a self assessment every year. Because I'm a UK national I can claim the personal allowance and in fact I don't have to pay tax (income below 10k). If I wasn't a UK national I wouldn't get the personal allowance.

(I know this is a simplification and tax treaties might come into it if I wasn't a UK national but nothing that would apply to me. I also agree it's rediculous I get the personal allowance but speak to your government about that one!).

As a dual citizen I have to pay a lot for UK taxes plus Federal taxes. Im doubled tax. We are trying to avoid that for him. He is only 18

@GroundAlmonds

You don’t (he doesn’t) need a solicitor to apply for the renunciation. The link *@fallfallfall* posted covers it. Maybe your DS would benefit from advice, though. This doesn’t seem like a great idea. Are you the one pushing this plan?

No he is. He has no interest in being a UK citizen

@GroundAlmonds

Is he earning enough at eighteen for this to be an issue?

Very much so

Interesting typo me saying your government - I'm clearly trying to disassociate myself from them 😀

Cross posts but as I said UK nationality won't change this if he's living half the year in the UK. You need to look at the US-UK tax treaty.

@HappenedForAReisling

If he'd non-domiciled he shouldn't have to pay tax anyway.

That will be tricky. His permanent address will be UK for 4 years

@Nomaigai

Cross posts but as I said UK nationality won't change this if he's living half the year in the UK. You need to look at the US-UK tax treaty.

No he will be there for 4 years for now.

Is this some kind of stealth boast?