So... are the ISPs instructed to record only domestic connections? Or am I being surveilled too if I happen to connect to an ip address located in the UK? Or similarly, if a UK resident happens to connect to me?
It's irrelevant really in terms of the petition, as the site is a mechanism for British citizens to bring their concerns to the attention of parliament. I assume you would have to go down a different avenue to lodge your objections.
Note that I agree with your sentiment, just that that is what the site is for!
However in reality, the UK is tapping all undersea cables coming into the UK (so basically almost all transatlantic ones), and logging everything. https://www.theguardian.com/uk/2013/jun/21/gchq-cables-secre.... This is done under the Tempora program: https://en.wikipedia.org/wiki/Tempora.
So any connections into the UK are also being logged. This map gives you idea of the scale of connections coing through the UK: http://submarine-cable-map-2016.telegeography.com/ and this map shows the taps that have been discovered as part of the NSA Snowden leaks: http://lifewinning.com/submarine-cable-taps/ (Source code: https://github.com/lifewinning/submarine-cable-taps)