A quick look at the investment manager’s exemption

The Investment Manager’s Exemption (IME) is a crucial tax relief that allows UK-based investment managers to manage offshore funds without creating a UK tax liability for those funds.

Without IME: Offshore funds managed from the UK would be subject to UK corporation tax on their profits

With IME: Funds remain tax-transparent in the UK, preserving their offshore tax status

Understanding and complying with the IME is absolutely critical for all UK AIFMs of offshore funds.