Sunday, March 3, 2013

Americans renouncing citizenship to become British thanks to tax rise

This is by far one of the most idiotic issues for Americans living abroad.  No one else in the civilized world is subjected to this.  I'm just surprised there aren't more renunciations.
Even if a US citizen earns all their income in Britain they are liable for tax in their home country which can lead to unusual tax situations arising, said Ms Gelon.

For example, US citizens are expected to pay capital gains tax to the US government if they sell a property in Britain which is their main residence, even though a similar tax is not imposed by the British Inland Revenue.

The US rules make concessions for tax paid overseas but there is still a risk that their citizens will be hit with a large tax bill, she added.

“Actually giving up your citizenship is dead easy - once you have an appointment with a consular official it takes a matter of minutes.

“But getting an appointment in London can take three months and that is largely because of the tax issues,” she said.

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