Guidance

Find out about the Investment Manager Exemption for non-residents

How the Investment Manager Exemption identifies if overseas investors are liable for tax on transactions conducted by a UK investment manager.

The Investment Manager Exemption

One of the reasons for the UK attracting non-resident investors (including hedge funds) is their ability to appoint UK based investment managers without creating a risk of UK taxation for themselves.

HMRC is committed to maintain this environment by offering the Investment Manager Exemption.

The Investment Manager Exemption uses qualifying tests to make sure:

  • overseas investors are not charged to UK tax for investment transactions conducted on their behalf
  • any fees received by a UK resident investment manager for services performed for the non-resident are fully chargeable to UK tax

HMRC’s International Manual which includes Statement of Practice SP1/01 has more information about how the Investment Manager Exemption works.

You can find more information in HMRC’s International Manual.

Who to contact for further advice

Write to HMRC if you have a question about the Investment Manager Exemption:

Investment Manager Exemption Team
HMRC
B8.22 Stratford Regional Centre
Central Mail unit
Newcastle NE88

You can also send an email: investmentmanagerexemption@hmrc.gov.uk.

Published 29 May 2014
Last updated 13 January 2022 + show all updates
  1. Address to send a question about the Investment Manager Exemption has been updated.

  2. Who to contact for further advice has been updated with new contact details.

  3. Who to contact for further advice details have been changed.

  4. The contact details for who to contact for further advice have been updated.

  5. New contact details added

  6. Who to contact for further advice details have been changed.

  7. First published.