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Disclaimer: If i give advices i talk from my personal perspective, and it is not to copy 1 on 1. I rely on everyone’s common sense. Everyone has to think himself about implementing it for himself and to consider legal circumstances.
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If red tip it is tracer.
If red tip with a silver band it is armour piercing incendiary with tracer element.
The bullet is too corroded to determine if it had a silver band or not, so it might be API-T.
The head-stamp U 42 indicates that it was made in 1942. U is the maker, which might be the Remington Arms Company, or it might be Pretoria Mint, as both used U. I no longer have my .50 cal reference book, so I cannot confirm which maker it is.
Don’t forget in the UK this is either Section 1 or Section 5 ammunition depending on the bullet type, and needs the appropriate license, so it’s best to hand it in to the Police a.s.a.p.
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Tracer rounds (And live rounds in general) will require a firearms licence to own, so this will need to go off to the police.
I made a thread on Ammo colour code types some months back, which might be useful should you find more. viewtopic.php?f=61&t=106179
In this case 'U' is for the Utah Ordnance Plant, Salt Lake City, UT.
Shame, as it appears to be a somewhat uncommon headstamp.
https://forum.cartridgecollectors.org/t ... 42/31175/6