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US Treasury report record increase.
Boris Johnson is among record numbers who renounced US citizenship during 2016, according to data just released by the US Treasury.
David Treitel, managing director of London-based American Tax Returns Ltd, calls this the ‘Boris effect’ whereby large numbers of Americans in the UK renounce US citizenship mainly to avoid the nuisance of US tax.
Mr Treitel said: ‘With President Trump now in office and political opinion outside America largely opposed to the new president, renunciations will increase rapidly again during 2017.’
However, to avoid an exit tax, any American renouncing their citizenship must have filed at least five years of US tax returns, reporting worldwide income, gains and financial assets.
