A principal trader who is recognised by the Panel as an exempt principal trader for the purposes of the Code. Principal traders must apply to the Panel in order to seek exempt status. The Panel relaxed the usual rules on concert parties afforded exempt status so as to allow multi-service financial organisations to continue both their normal dealing activities and their corporate finance advisory activities without material interference. This is subject to the relevant definitions, particularly the Notes under the definition of 'exempt principal trader', and the provisions of Rule 38 and Appendix 3 (Directors’ Responsibilities and Conflicts of Interest Guidance Note), Section 2 (Financial Advisers and Conflicts of Interest). See also Response Statement 2004/3: Market-related issues.

A firm such as a law firm, whose professional body is a designated professional body.

Exempt professional firms can carry on insurance mediation but their details must be included on the FSA's Exempt Professional Firms Register.

Exempt property describes assets that are protected from certain legal claims or processes, so they cannot be seized, realised or distributed in the usual way. It is a descriptive term used across insolvency, enforcement and succession law rather than a single, uniform statutory concept.In personal insolvency and bankruptcy in England and Wales, Northern Ireland and Ireland, exempt property typically includes items necessary for basic domestic needs or for the bankrupt’s employment or business, such as ordinary household goods and tools of the trade, as set out in insolvency legislation and rules. Similar protections apply in Scottish sequestration under the Bankruptcy (Scotland) Act.In enforcement of judgments, exempt property commonly refers to goods that bailiffs, sheriffs or enforcement officers cannot lawfully take, again usually limited to essential household items and work tools.In succession and family provision, “exempt property” may denote categories of assets that pass outside an estate, or are insulated from claims (for example, certain pension rights or jointly owned property), depending on the relevant statutory scheme and case law.The precise scope of exempt property is always context‑ and statute‑specific and must be checked against the governing legislation in the relevant UK or Irish jurisdiction.

A regulated activity carried on by an exempt professional firm.

A supply that is excluded from the charge to tax.

A transfer of value that is exempt from inheritance tax. The rules are set out in IHTA 1984, ss 18–29A.

A unit trust that is specific to pension funds and charities and enjoys the same tax advantages as the assets of a directly invested pension fund.

ARCHIVED: This archived Practice Note provides information on the withholding tax exemption that was available for UK source yearly interest payments or royalty payments made before 1 June 2021 (or in certain cases, before 3 March 2021) to associated EU company recipients. This withholding tax exemption was repealed by section 34 of the Finance Act 2021 with effect for payments made on or after 1 June 2021 or in certain cases, on or after 3 March 2021. This Practice Note is not maintained and is for background information only. For other UK withholding tax exemptions, see Practice Note: Exemptions and reliefs from UK withholding tax on yearly interest. This Practice Note is only relevant to UK source payments of interest and/or royalties made before 1 June 2021 or, in certain circumstances, before 3 March 2021. For more information, see: Brexit and repeal of UK legislation that gave effect to the Interest and Royalties Directive, below. The exemption covered

Why is the exemption for financial services important? VAT is a key concern for businesses in the financial sector as the supply of certain types of financial services to customers belonging in the UK are exempt from UK VAT. This is important because: • businesses will not charge VAT on services falling within the exemption, and • such businesses will not be able to recover input VAT on supplies they receive in the course of making an onward exempt supply The financial services exemption from VAT The UK VAT exemption for financial services is based on the relevant provisions of Council Directive 2006/112/EC (the VAT Directive). These have been enacted into UK law by Schedule 9, Pt II, group 5 to the Value Added Tax Act 1994 (VATA 1994) which sets out a number of items falling within the exemption. This Practice Note focuses on the exemptions for services falling within the categories of ‘dealing with money’ (item 1 of Group 5) and ‘operating a bank account’ (item 8

Why is the exemption for financial services important? VAT is a key concern for businesses in the financial sector as the supply of certain types of financial services to customers belonging in the UK are exempt from UK VAT. This is important because: • businesses will not charge VAT on services falling within the exemption, and • such businesses will not be able to recover input VAT on supplies they receive in the course of making an onward exempt supply The financial services exemption from VAT The UK VAT exemption for financial services is based on the relevant provisions of Directive 2006/112/EC (the VAT Directive). These have been enacted into UK law by Schedule 9, Part II, group 5 to the Value Added Tax Act 1994 (VATA 1994), which sets out a number of items falling within the exemption. This Practice Note focuses on the exemption for dealing with securities (VATA 1994, Sch 9, Part II, group 5, item 6) and the exemption for underwriting (VATA 1994, Sch 9, Part II,

Why is the exemption for financial services important? VAT is a key concern for businesses in the financial sector as the supply of certain types of financial services to customers belonging in the UK are exempt from UK VAT. This is important because: • businesses will not charge VAT on services falling within the exemption, and • such businesses will not be able to recover input VAT on supplies they receive in the course of making an onward exempt supply The financial services exemption from VAT The UK VAT exemption for financial services is based on the relevant provisions of Directive 2006/112/EC (the VAT Directive). These have been enacted into UK law by group 5 of Schedule 9, Part II to the Value Added Tax Act 1994 (VATA 1994), which sets out a number of items falling within the exemption. This Practice Note includes references to EU Directives and case law. The UK ceased to be an EU Member State on 31 January 2020. On this date, the UK entered an implementation period (IP),