A record number of Americans abandoned their US citizenship last year, according to official figures.

Statistics published by the US Federal Register showed that 5,411 people gave up their nationality, an increase of 26 per cent on 2015.

For many the main motivation is tax.

Americans are liable for US tax even if they live abroad. Although in most cases they are unlikely to face a bill because they can offset what they pay to the taxman in their country of residence.

However high earners can face a bill from the US Internal Revenue Service even after they have paid substantial taxes to the Government in their adopted country.

In addition they are expected to file a US tax return every year, irrespective of what they earn.

Americans living abroad are also taxed on any profit they make on selling their home when they live abroad, even if they have no intention of ever living in the United States.

New laws passed in 2010 made life even more difficult for American expatriates.