American citizens living overseas generally face the same income tax requirements that they would if they were still living in the US. This is because US tax laws are based on citizenship rather than on residency.

The Inland Revenue Service (IRS) penalises financial services companies for not complying with its tax reporting requirements. As a result, many do not want to work with US clients. This includes all "US persons".

"For tax purposes, a "US person" is anyone who was born in the US, or has a parent (even an adoptive parent) who is an American citizen," explains Janette Saxer, Portfolio Director for Schroders Wealth Management US. "The parent could have left the US years ago and no longer use their US passport, and the child could be none the wiser. Or if you have worked in the US and hold a Green Card, even after you return to the UK, you still have to file US taxes,” she adds.

But, just how many people does this impact worldwide?

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