Ireland ETF domicile for Non-Doms

[willow2013]

Hi,

I've read the following thread (UK non-dom: best offshore brokers and banks account) which discusses Ireland domiciled ETFs.

I'm looking to open a broking with swissquote to buy Ireland domiciled ETFs so that it is not considered remittance to the UK.

My question is that some of these Ireland domiciled ETFs, whilst domiciled in Ireland, are also listed on the London Stock Exchange - would this cause an issue for UK non-dom?

 

[Martin Everson]

The issue is UK situs of the assets within the ETF not where its listed. If the ETF has UK situs then you are committing a remittance if you buy it wherever it is listed.

Your best to get professional tax advice here. I seem to remember if you buy funds via banks like CS in Switzerland they actually will tell you if a fund is UK non-dom friendly or not via filters they offered.

 

[willow2013]

Thanks Martin - can I follow up with the Uk situs element. The ETFs are purely trackers of an index (e.g. S&P500 etc). So in the case of S&P500, there are no UK companies per se but some may have operations in the UK but I presume this is fine?

This would be in constrast to say a European tracker which may have a handful of UK companies, in which case this is likely to fall foul of the UK situs.

 

[Martin Everson]

Thanks Martin - can I follow up with the Uk situs element. The ETFs are purely trackers of an index (e.g. S&P500 etc). So in the case of S&P500, there are no UK companies per se but some may have operations in the UK but I presume this is fine?

Yes

This would be in constrast to say a European tracker which may have a handful of UK companies, in which case this is likely to fall foul of the UK situs.

Correct

 

[willow2013]

Although I've read online that situs of the company depends on the location of its registers, so if an ETF is domiciled in Ireland with its location of its register also located in Ireland - this would imply its irrelevant that the underlying ETF companies are UK companies?

 

[Martin Everson]

Although I've read online that situs of the company depends on the location of its registers, so if an ETF is domiciled in Ireland with its location of its register also located in Ireland - this would imply its irrelevant that the underlying ETF companies are UK companies?

Its not about the ETF or its share register. It is about the location of the assets inside the ETF. If the assets inside the ETF have UK situs and you buy that ETF whether it is registered on the moon or in Afghanistan it is considered a remittance for a UK tax purposes.

You need to get proper tax advice from a UK non-dom tax specialist.