The scheme opened for applications on 31 January and offers up to 5.4 million Hongkongers a five-year visa and a path to full British citizenship.

According to reports, UK government sources said that about half of the 5,000 applications received were from Hongkongers who were already in Britain having been granted Leave Outside the Rules.

This offered temporary settlement for those fleeing China’s security crackdown while waiting for the visa route to open last month.

The UK government said it expects about 300,000 people to use the newly launched scheme in its first five years.

They allege that renouncing their US nationality is a “fundamental, constitutional, natural and inherent right”.

Their claim revolves around the fact that the US charges $2,350 (£1,757, €1,945) for renunciation proceedings, something they claim breaches the US constitution and international law.

Specifically, the AAA and 20 individuals believe such a fee violates the due process clause under the fifth amendment of the US constitution as well as the first amendment, which guarantees freedom of expression; and the eighth amendment that precludes excessive fines to punish individuals wishing to sever all connection with the country, the complaint said.

The document alleges a further violation of the US’ Administrative Procedure Act, as well as international law.

Fatca

The fee was first introduced in 2010 and set at $450, which was then increased to the current sum in 2014.

Both the association and the 20 US nationals believe this was done in tandem with the passing of the Foreign Account Tax Compliance Act (Fatca), which requires US nationals abroad, and their foreign financial institutions, to report information to the Internal Revenue Service (IRS) for tax purposes.

“As Thomas Jefferson stated in the ‘Bill Declaring Who Shall Be Deemed Citizens of This Commonwealth’ of June 18, 1779, giving up nationality, or voluntary expatriation, is a natural right which all men have,” said Fabien Lehagre, president of the AAA.

“The US administration is not above the laws and constitution of the United States. It cannot deprive us of the fundamental right of renunciation.”

The firm assessed data from the Office for National Statistics (ONS) on the type of passport held by UK residents and found UK-only passports accounted for the highest percentage of the population (75%).

Perhaps more surprisingly, 17% of the population fall within the category of ‘no passport held’, meaning that over 11.2 million are currently without one.

Just 1% of the UK population holds an Irish-only passport, while those holding other EU passports account for a further 3% of the population. Those with a singular passport for an additional foreign nation also accounted for 3% of the UK.

Despite a rush to secure Irish passports following Brexit, those holding dual nationality accounted for just 1% of the population, equating to 731,316 people in the UK.

Small percentage

Arthur Sarkisian, managing director of Astons, said: “There has been a notable uplift in the number of UK citizens looking to secure alternative citizenship in order to bypass any Brexit-induced obstacles where travelling and working around the world is concerned.

“At the same time, many have been quick to shine a negative light on those looking to secure additional citizenship through investment in both the UK and other foreign nations.

“However, the figures show that, certainly, where the UK is concerned, dual citizenship accounts for a very small percentage of the population, and those that might be abusing the citizenship-by-investment pathway will be an even smaller percentage still.

“Perhaps the most interesting statistic is the fact that as much as 17% of the UK population has no passport at all and can rest easy regardless of any Brexit travel blockades that might come.”

‘Accidental’ Americans are people who acquired US citizenship either by being born in the country, or by having a parent who is a US citizen.

Many accidentals have turned to renouncing their American citizenship to get away from the remit of the Foreign Account Tax Compliance Act (Fatca), which requires them and their foreign financial institutions to report personal data to the Internal Revenue Service (IRS) and pay tax in the US on their foreign income.

Fabien Lehagre, president of the AAA, told McCourt, that the renunciation services and the Federal Benefits Units have been closed for the last seven months “allegedly because of the covid-19 pandemic”.

“This is totally incomprehensible,” he said, “because all the other services of your embassy have remained open. So, I would urge you to re-open without delay the renunciation services in Paris and the Federal Benefits Unit.”

The application service in the UK has also been shut because of the coronavirus outbreak.

‘Unacceptable’

Accidentals are increasingly waiving their US citizenship to not be affected by Fatca.

Also, many foreign financial institutions have been turning away US citizens, as they either don’t want or don’t have the capabilities to report to the IRS.

Many, like Dutch American citizen Ronal Aries who was born in the US but lived in the Netherlands his whole life, are having their bank accounts closed with no hope of opening a different one.

This impacts not only their daily financial lives but also their retirement as they won’t have an account where their pension can be transferred in to.

Lehagre told International Adviser: “The US has adopted an extraterritorial law that obliges French banks to ask French citizens born on American soil for either a Social Security Number (SSN) or a certificate of renunciation of American nationality.

“The services of the American embassy in Paris have been closed for more than seven months. Thousands of French citizens are blocked and can no longer open an account, take out a mortgage, or make investments because they cannot renounce American citizenship or obtain an SSN.

“This is just unacceptable, and it shows [it is] high time the United States admits that Fatca must be repealed.

“Accidental Americans living in France are afraid to find themselves in the same situation as [Aries] who will soon be expelled from his bank because he could not provide an SSN and a certificate of loss of nationality.”

Republican Overseas said in the letter to the US president to “consider remedies for the harms done to Americans abroad via onerous regulations such as Fatca” and to “end citizenship-based taxation” by changing the definition of ‘individual’ in the US tax code to ‘resident of the USA’. 

The legislation requires all American citizens living overseas to pay tax on their foreign income to the Internal Revenue Services (IRS). Their foreign financial institutions fall under the act’s remit as well, as they are bound to share citizens’ financial data with the taxman. 

Many people have turned to renouncing to their US citizenship altogether, but for some this is an expensive process as it requires them to pay $2,350 (£1,779, €1,987). 

Legal fights ahead 

France-based activist group Association of ‘Accidental’ Americans (AAA) has managed to raise €20,000 (£17,905, $23,644) through its campaign to fund a legal action against the US to challenge Fatca as “unconstitutional”, and against the “expensive” costs associated with renouncing US citizenship. 

The word ‘accidental’ refers to people who have acquired US citizenship either by being born in the country, but who have never lived there, or from their parents. 

Fabien Lehagre, president of the AAA, said in a post on his LinkedIn page: “Thanks to the generosity of 260 donors, I announce that the lawsuit we will be bringing against the US Department of State early next year is fully funded.

“I thank you for your confidence and will be sure to come back to you soon to give you more details about the upcoming legal action that the AAA will launch on European soil against Fatca.”