Overview
Tax Accruals for UK Life Companies
The calculation of tax accruals is one of the most complex and important parts of the valuation/unit pricing process. Failure to use current transactional data or include all elements of the tax code result can cause unit price calculation errors that are difficult to detect.
InvestPro automates taxation accruals in portfolio valuations, removing lag or loss of accuracy. It computes tax provisions for unit-linked funds, subject to UK ‘I-E’ tax rules, and calculates Capital Gains Tax (CGT) owed by non-UK residents on property assets at an individual fund and corporate level. Tax calculations are provided for the insurer’s tax returns and financial statements, and results can be used in the company’s corporate taxation model.
UK and IRE legislation
Stand alone or integrated
Full historical audit trail
Simultaneous fund and corporate
Automated and scalable
Key Benefits
Boost Investment administration efficiencies, reduce operational costs and mitigate risk
- Increase the accuracy of tax accruals with automation
- Meet TCF and ABI guidelines
- Comply with new rules for CGT tax for non-UK residents
- Improve profit analysis by aligning policyholder and company taxation
- Avoid undue credits to policyholders for tax losses
- Reduce risk with a robust audit trail
Meet Best Treating Customers Fairly (TCF) standards for unit-linked tax provisioning.
Compute tax provisions for unit-linked funds subject to UK ‘I-E’ (income minus expenditure) based on a full application of the ‘I-E’ rules. Because of the complexity of the UK ‘I-E’ tax rules, computing accurate tax provisions for unit-linked funds is difficult.
Tax provisioning on InvestPro is done at both fund level and importantly at life company level.
Tax functionality includes:
- Indexation
- Deemed disposals
- Two year carry back on deemed disposals
- Seven-year spreading of deemed disposals
- I-E daily calculations
- For unit-linked funds separating income, realised gains, deemed disposals and unrealised gains
- Loan relationship and CGT streamed separately.
InvestPro aggregates UK unit-linked funds and portfolios subject to ‘I-E’ tax into a single company account and applies the ‘I-E’ taxation rules used for the daily calculations to either determine the corporate tax liability or alternatively, supply this information in an appropriate format to be included in the overall corporate tax calculation.
This is a stand-alone software module built and licensed by FRS and backed up by an actuarial team which ensures timely, efficient onboarding.
Other Key Features
Asset Valuations Tax Accruals for UK Life Companies Unit Pricing and NAV Cash Allocation and Rebalancing Charges Trade Order Management General Ledger Reconciliations Self-service web portal PRIIPs Fund Performance Oversight & Audit Solvency II QRTs Solvency II Unit Matching Box Management Trustee Investment Plan (TIP) Administration Individual Constant Proportion Portfolio Insurance (iCPPI)Asset Valuations
What it does for you
- Produce lightning-fast valuations
- All major asset classes covered
- Inbuilt links to external data providers
- Exception based automation facilitates operational efficiency
- Full drill-down records of past valuations as standard
- All fund structures covered, flat, tiered and a combination of both
Schedule a Live Demo
Need more information or want to arrange a demo of InvestPro? Contact our team today and we will be happy to help!