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bigduckontax, Accountant
Category: Tax
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I have dual nationality between UK and US and need to know

Customer Question

I have dual nationality between UK and US and need to know if it is better for tax purposes to renounce my US citizenship as I plan to live here in the UK. I am about to travel to the US to finalise my divorce and bring a lump sum of money out of the marriage to buy a house for me to live in. What is your advice?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. I would suggest it most inadviseable to renounce your US citizenship. Both the UK and the States recognise dual nationality and with the Double Taxation Treaty in force between the UK and the US the same source of income cannot be taxed in both jurisdictions. If you live in the UK for more than 183 days in any one tax year you will be liable for UK taxation on your world wide income irrespective of nationality. Any income you derive from the States, if taxed there, then under the Treaty the tax deducted will be allowed as a tax credit against UK liability on the same income stream. I would suggest that an US citizenship is not one to relinquish lightly. I do hope that you have found my reply of assistance.