Purchase of Irish ETF listed in London for UK non-dom - remittance risk?

[rr296]

I believe the question has been raised a few times over the past 10 years but I have not seen a clear response, so I wanted to ask one more time.

I am UK resident but non-dom. I have an offshore bank & brokerage account in Jersey. Through that offshore broker, I am looking to buy a Dublin-domiciled ETF listed on the London Stock Exchange. The source of the funds is mixed (i.e. not clean capital).

The asset situs (eg for CGT and IHT purposes) is clearly offshore as the share register for the ETF is based in Dublin - so I would not be acquiring any UK property.

Given the above - does the fact that the transaction is effected through the LSE constitute a risk that the transaction is deemed a remittance by HMRC? or is it irrelevant?

I can see a parallel with an offshore-to-offshore payment, where my Jersey bank may well route that through London but because this is purely mechanistical and wholly outside my control - it wouldn't be deemed a remittance (or at least that's my understanding). But here in a way, I would make a choice to acquire the ETF that has a London listing - so there is an element of choice...

Anyhow - expert views welcome...!

[maths]

It is difficult to see how the purchase of the ETFs using offshore monies in an offshore bank could constitute a remittance thereof even where the ETFs are LSE listed.

[rr296]

thanks maths

I was thinking that my payment for the ETF shares (most likely) goes into the UK via my offshore bank given that the ETFs are traded by market makers who would typically operate out of London...

but upon reflection, I guess that does not matter as those market makers (or more generally any market participant who might be selling their shares) are not "relevant persons" and therefore their location is irrelevant

no service is being rendered to me in the UK, and no property is brought to / received in / used in the UK as the asset (ETF shares) I am acquiring with my offshore income and gains is non-UK situs

is that the correct way to look at it in your opinion?

[maths]

is that the correct way to look at it in your opinion?

Yes.