In the last weeks of the long US election campaign, Trump issued a statement saying: ‘I support ending the double-taxation of overseas Americans!’

At the time Republicans Overseas welcomed the announcement, stating: ‘We have spoken to many politicians over the years, and while they sympathised with the burden of double taxation, very few have been willing to act. President Trump fights for the economic freedom of America’s working men and women, whether they live stateside or abroad.’

Americans living in the UK who are hoping for changes to how they are taxed on the basis of remarks by president-elect Donald Trump are likely in for a disappointment, despite his overwhelming win at last week’s election, which also saw the Republicans take control of the Senate and the House of Representatives.

John Havard, a US/UK private client consultant at Blick Rothenberg said: ‘President-elect Donald Trump did hint at relaxing the US taxation of US citizens living outside the US in the latter part of his presidential campaign.

‘Measures which either reduce or eliminate the US taxation of overseas Americans would be attractive to those US citizens living overseas.’

However, securing widespread support from law makers will be a challenge, particularly as to get through Congress any law has to be passed with support from 60% of the House.

‘Getting support in Congress for eliminating the US taxation of US citizens living outside the US is likely to be difficult,’ said Havard. ‘Without a super majority in the Senate, any change would need to pass by budget reconciliation. Such a measure would result in less revenue for the US Treasury and the need to identify an offsetting revenue raiser.

‘It will be hard to convince politicians with a predominantly US domestic agenda that revenue raisers should be applied for the benefit of Americans living overseas if that were to involve sacrificing something on their US domestic wish list.’

US citizens or residents living or travelling outside the States are generally required to file income tax returns, estate tax returns, and gift tax returns, and pay estimated tax in the same way as those residing in the US.

In addition, they have to file a FinCEN Report 114, Report of Foreign Bank and Financial Accounts (FBAR) if they had a financial interest in, or signature or other authority over, any bank, securities, or other financial account(s) in a foreign country, above a nominal value of $10,000 (£7,700) at any time during the calendar year. 

Havard said: ‘The economic cost of taxation for a US citizen living in the UK is unlikely to be materially reduced. This is because the tax rate is determined by which of the UK or the US taxes a particular item at the higher rate.

‘Under the UK government’s proposals to reform the taxation of non doms, in most cases where an American has lived in the UK for more than four years, the UK will have the higher tax rate.

‘This means relaxing the rules for taxing US citizens living outside the US will not materially impact the overall economic cost of taxation if they are in the UK.’