I have been sent a cheque from the IRS in the United States and need to cash it in the UK, Lloyds bank have advised me they no longer provide this service. What are my alternatives?
I get regular USD dividend cheques from the USA (and an American bank) and have no problems depositing them at Barclays using a "Cheque Collection and Negotiation Formset". No charge, other than Barclays lousy exchange rate.
According to this, you can either go to a foreign currency exchange shop, or visit a bank. It sounds like your bank doesn't offer this service, but that doesn't mean other banks also don't. Any major US bank (Wells Fargo, JP Morgan, etc.) should have branches in the UK, and you can visit them to see if you can cash the check.