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HMRC internal manual

International Manual

Non-residents trading in the UK: through UK investment managers, brokers or Lloyd’s agents: investment manager exemption: the legislation


Although the exemption is generally referred to as ‘the investment manager exemption’ it is available, subject to certain conditions, to:

UK agents to non-resident Lloyd’s members INTM269040
UK brokers acting for non-resident traders INTM269050
UK investment managers carrying out investment business for non-resident traders INTM269060 to INTM269150

The legislative provisions for the exemption are at:

* For income tax - ITA07/Ss817-828 and ITA07/Ss835C to 835S
* For corporation tax - CTA10/S969 to S972, and CTA10/S1145 to S1150


Statement of Practice 1/01 (SP1/01), originally published on 6 June 2001, contains extensive guidance on how HMRC will apply the investment manager exemption provisions.

SP1/01 was revised and reissued on 20 July 2007 to reflect provisions with regard to companies which had been revised in Finance Act 2003, as well as developments in investment management practice, and took immediate effect. The original statement of practice remained in force until 31 December 2009 to allow a non-resident or its investment manager to make any necessary changes to comply with the revised SP1/01.

The statement of practice was updated on 03 November 2016 to take into account legislative change, including the expansion of the “white list”, which describes the types of investment transactions that may qualify for the Investment Manager Exemption, and to acknowledge the impact of certain changes in the regulatory environment.

The revised text of SP1/01 is reproduced at INTM269200.