The main purpose of the Investment Manager Exemption (IME) is to enable a non-UK resident to appoint a UK-based investment manager to carry out qualifying investment transactions without the manager’s activities, by themselves, exposing the non-resident to UK tax on the resulting trading profits. In the case of a non-resident company, the IME forms part of the rules determining whether the company trades in the UK through a permanent establishment. For non-resident individuals and trustees, qualifying trading income is treated as disregarded income for the purposes of the limitation on the income tax liability of non-residents. The IME was originally enacted in section 127 of the Finance Act 1995 and is now replicated in several parts of the tax legislation. Its most important applications are: • the treatment of qualifying trading income of non-resident individuals and trustees under ITA 2007, including sections 814 and 817–828; • the exclusion or limitation of the liability of investment managers and other persons as UK representatives under ITA 2007, Part 14, Chapter 2 and CTA 2010, Part 22,