American citizens resident in Britain, hoping to escape draconian new tax rules originating in Washington, may have to spend as much as $10,000 (£8,200) to renounce their citizenship, Telegraph Money has learned.

Since 2014 new rules applying here have forced British companies to supply details to US tax authorities about UK-residing customers who have US citizenship.

This results not only in penal taxation of everyday investments, but many other costs and difficulties. Some major British financial firms simply refuse to do business with American citizens as a result.

Following recent reports in these pages, one reader, who wished not to be named, told Telegraph Money of her $10,000 bill to renounce her citizenship. She did not owe any tax or fines to the US authorities, but merely wanted to be free of the administrative burden.

Born in the US, she left as an infant, and had no idea she was an American citizen until 2015 when her bank asked her for confirmation of citizenship.

Despite never having had a US passport, it was revealed she was a citizen.

Renouncing citizenship was particularly onerous as she had no social security number, which is a requirement for any US tax filing. To obtain one, she had to provide documentary evidence for every year she had not been in the US – almost 50 years.