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?

And as people have said, repeatedly, in the UK taxation isn't linked to citizenship. It's linked to domicile. Which is affected by him being on a military posting. What he owes to the UK in taxes will almost certainly not change whether he's a UK citizen or not. Renouncing citizenship - unlike US citizenship - will not fix this issue. It's the wrong answer to the question, of the question even exists.

@ListeningQuietly

I know the double taxation agreement. Every year that I spend half the year in the UK I'm double taxed. In that case you are doing your IRS and HMRC returns wrong.

Both countries give you a deduction for federal / national taxes suffered in the other.

You need to talk to both your US and UK accountants
and see if you can file the corrections.

I spent 22 years in the USAF I know all about rules for military personnel posted overseas. Once again I lived overseas 16 out of my 22 years in the military
Then go ask HR not a bunch of randommers in teh UK

Thats dependent on income and I make way more than that. The UK is rightly taxing me and I have no issues with that. What I really need to know is if is unear is if his passive income hear in the States will affect this. If not he should be ok without giving up his citizenship. Waiting on a call back from my UK solicitor

@reluctantbrit

There is more than just the tax issue.

If he needs to be in UK but is not a citizen he needs to go through all the usual Visa applications, that costs money, relies on sponsors and he is in danger of getting booted out if he looses income.

Tax is a separate issue and you need a tax advisor specialised in international taxation, a solicitor doesn't help.

In today's climate I would never renounce a citizenship. His future children may benefit from it.

A friend from the US with also an Irish passport was asked as the chances are very slim to ever live back in the US and he said he would never close a door he may need again in the future how slim the chances are.

No he doesn't need to have visas or anything. He has a UK passport and now a Military issued US passport

So you're asking about his income in the USA, when he is living in the UK?

Depends on his domicile and if he brings it into the UK.

If he's USA domiciled and doesn't transfer it to a UK bank account it won't be taxed in the UK.

Thats dependent on income and I make way more than that.
Hogwash. Double taxation agreements apply to ALL citizens of countries they cover.
You need a better accountant.

What I really need to know is if is unear is if his passive income hear in the States will affect this. If not he should be ok without giving up his citizenship.
Not having a UK passport would not exempt him from tax on overseas if he was earning in the UK
You need a better accountant

Waiting on a call back from my UK solicitor
you need a better accountant

He honestly doesn't have to do this OP. My DH and I are both dual US/UK citizens and you only pay tax in the country you live in unless you pay less in your country of residence than you would in your other country and then you just pay the difference, but it's not much.

@MumInBrussels

And as people have said, repeatedly, in the UK taxation isn't linked to citizenship. It's linked to domicile. Which is affected by him being on a military posting. What he owes to the UK in taxes will almost certainly not change whether he's a UK citizen or not. Renouncing citizenship - unlike US citizenship - will not fix this issue. It's the wrong answer to the question, of the question even exists.

Yes it will. SOFA agreement protects US military members from having to pay taxes in the countries that they serve in. However, dual citizens are not protected by that when they are stationed in one of their home countries. For instance if my son was stationed in Germany this would be a non issue. But he is being stationed in his home country so ots a tiny bit different

Not sure why you're on a public forum when no one can advise you without knowing the specific circumstances. My DH is in a similar situation and I would strongly advise you speak to a good international tax advisor immediately.

@ListeningQuietly

Thats dependent on income and I make way more than that. Hogwash. Double taxation agreements apply to ALL citizens of countries they cover. You need a better accountant.

What I really need to know is if is unear is if his passive income hear in the States will affect this. If not he should be ok without giving up his citizenship.
Not having a UK passport would not exempt him from tax on overseas if he was earning in the UK
You need a better accountant

Waiting on a call back from my UK solicitor
you need a better accountant

Nope of yoir yearly income is more than 95,000 pounds you have to pay taxes in the UK. He will always have to pay to US tax. Thats why his passive income will matter

SOFA agreement protects US military members from having to pay taxes in the countries that they serve in. However, dual citizens are not protected by that when they are stationed in one of their home countries
So actually you only started this thread to brag about how much you both earn.

Just make darned sure he remembers which side of the road to drive on when he arrives
en.wikipedia.org/wiki/Death_of_Harry_Dunn

God my head hurts with lots of posters giving what reads as solid, informed advice and the Op just being what I can only describe as belligerent.

I have no skin in this other than to know how this all ends.

You are quite mistaken @Leaannb

You only pay U.K. tax on the money you earn in the U.K. (this won't change if citizenship is renounced by the way) and tax paid in the U.K. is a credit on your us tax return - there's a tax treaty so you are not double taxed. My dd is a dual national. The us government makes you file a tax return even if you are not resident whereas if his U.K. income is zero you don't have to file a return in the U.K. There's good reasons to recind us citizenship thus but not in reverse. (The us government is highly unusual in having a worldwide tax thing).

There's a few complications and exceptions I could go into but basically if he's a dual national living in the USA and not earning in the U.K. then he doesn't need to be concerned

Ok, so I understand he might have to pay tax in the UK, but I don't understand why he'd be double taxed, even if he exceeds whatever threshold it is. He'd have to file tax returns in both countries, assuming military salaries aren't exempt (they usually are, but whatever). But that's where the double taxation agreement surely kicks in - he only pays the extra tax due in the US, if any.

. He would die waiting for help on the NHS.

Well off the top of my head, I can think of two American servicemen whose lives were saved when I was on duty in an NHS hospital. One had crashed his car whilst off his head on drugs. The other had ridden a motor bike drunk. I'm sure there were many more, but those two stick in my mind

Ps if you are American and live in the U.K. you have to pay tax, ditto every other nationality. It's your residency that matters not your nationality. Military have there own arrangements, his nationality is irrelevant

He will not pay U.K. tax on us property we do not tax overseas income in the U.K.

Nope of yoir yearly income is more than 95,000 pounds you have to pay taxes in the UK. He will always have to pay to US tax. Thats why his passive income will matter
You definitely need a better accountant

Gaming the IRS against HMRC is quite fun but not for the faint hearted

Off topic I know, but if you are a dual UK/ US citizen yourself, OP, are you sure your other children aren't also UK citizens even though they were born in the US? It depends on how you claim your UK nationality, but if you were born in the UK, they may be automatically UK citizens pre 2006.

@CherryValanc

So you're asking about his income in the USA, when he is living in the UK?

Depends on his domicile and if he brings it into the UK.

If he's USA domiciled and doesn't transfer it to a UK bank account it won't be taxed in the UK.

He already has money in Barclay.....So far he hasn't had to pay taxes on it. It is so freaking complicated...Right now he is domiciled in the US bit after a year living in the UK his domicile will switch to his country of birth

I used to work in the Home Office Nationality dept and dealt with renunciation and domicile for tax purposes on a daily basis.
You're wrong on an awful lot of things OP and many of the posters on the thread advising you are correct.

However, returning to your OP.

Renunciation is easy. Pay the money, fill the form in and present evidence of your other nationality.

The British authorities cannot and will not advise you about another state's taxation, domicile and nationality law.

@NotAnActualSheep

Off topic I know, but if you are a dual UK/ US citizen yourself, OP, are you sure your other children aren't also UK citizens even though they were born in the US? It depends on how you claim your UK nationality, but if you were born in the UK, they may be automatically UK citizens pre 2006.

I was born in the States to 2 immigrants of the UK. My husband was born on US soil living in Germany USAFB. This particular child was born at Addenbrookes and is a UK citizen by birth and through me. I really shouldn't have gone shopping that fateful day

@TheSilentStars

I used to work in the Home Office Nationality dept and dealt with renunciation and domicile for tax purposes on a daily basis. You're wrong on an awful lot of things OP and many of the posters on the thread advising you are correct.

However, returning to your OP.

Renunciation is easy. Pay the money, fill the form in and present evidence of your other nationality.

The British authorities cannot and will not advise you about another state's taxation, domicile and nationality law.

.My solicitor just told me that he will be fine for his first year bit his domicile will revert to UK on the 2nd year os that false?

UK banks have been very wary of allowing US citizens bank accounts.

That might need to be checked too.

"Right now he is domiciled in the US bit after a year living in the UK his domicile will switch to his country of birth"

Are you certain about this? Because domicile isn't the same as residence, and if he's normally resident in the US and is only in the US because he's been posted there in the military, it is certainly arguable that his domicile remains in the US. Regardless of his citizenship.

@movingonup20

He will not pay U.K. tax on us property we do not tax overseas income in the U.K.

Are you talking property or money held in a UK bank? He does not have property there. I tried to give him one and he refused it due to this issue. However, he has a nice little account that is being held at Barclays