Abacus Life is recognised as the leading software for Life assurance companies. Clarity of calculation is a major strength, with a full audit trail providing users with confidence in the final return and a powerful risk management aid. Its robust nature guides the preparer through the computation and lends itself to easy review. This is reinforced by an error checking system that tracks and records changes and highlights data inconsistencies for correction.

A computation can be as straightforward or as complex as is required by the circumstances of the particular company. A basic set of schedules for the more straightforward situation can be added to by the user as necessary.

The product is backed by Deloitte and supported by an expert team of qualified tax and IT professionals, including experts in the life tax field. Regular updates are issued for changes to the legislation affecting Life companies.

Product versions

Abacus Life is designed for both mutual and proprietary organisations.

In addition, two types of file can be created - one for full computations, and a special 'reduced version' to enable the calculation of Corporation Tax Self Assessment (CTSA) instalment payments, tax provisions for accounting purposes, or projections.

Features of the software

Any number of participating or non-participating funds can be created in an Abacus Life computation, and all categories of long term business are supported.

The comprehensive suite of standard schedules includes the following:

• Form 40 (for each fund);
• Analysis schedules to support all income and expenditure items;
• Analysis of mathematical reserves and bonus allocation;
• Form 16 income and expenses;
• Allocation of investment income and gains;
• Apportionment of income and gains on assets linked to multiple business categories;
• Deemed disposals and deferred acquisition costs;
• Capital allowances for both management and investment assets;
• Overseas Life Assurance Business (OLAB) schedules.

Detailed aspects

In addition, there are many other features to deal with more detailed aspects of life taxation, for example:

• Limitation of relief for losses under Income and Corporation Taxes Act (ICTA) 1988 S 76(1)(aa) or S 434A(2);
• Deemed investment return on reinsured risks;
• Loss calculations and transfers on the occasion of a business transfer;
• Apportionment of balances on a business transfer.

Tax calculations

The following calculations are available in each computation:

• 'I minus E' computation;
• Notional Case I computation;
• Schedule D Case VI computation for each class of business;
• Determination of investment return (needs basis);
• Management expenses restriction;
• Ring fencing of capital losses;
• Tax charges applicable to each fund;
• Optimal relief for foreign tax;
• Calculation of policyholders' tax (using alternative methods);
• Deferred tax calculations.

The CT600 return is also produced automatically be the system.

Where alternative tax treatments are available, Abacus Life allows you to select whichever is appropriate to your particular circumstances.

CTSA payment on account version

To allow estimation of quarterly payments on account under CTSA, we have a special 'reduced' version of Abacus Life. This is designed to run in parallel with the full computation file, and enables payments on account to be calculated before the prior period computation has been completed.

The program allows you to make assumptions and determine amounts by reference to ratios based on the results of the prior period. The prior period amounts can be carried forward from the previous period payment on account file, or by an interface schedule with the full computation when this becomes available.

It provides a record of the information used to support instalment payments for compliance purposes, and enables you to monitor the interest position arising from under and over payments.

The reduced version also acts as a valuable tool for estimating taxation for management or year end accounting purposes.

Quality control

Once an Abacus Life computation has been created for a specific company, the structure will be preserved when it is rolled forward to the following accounting period. All relevant schedules and figures will automatically be carried forward for each individual fund - avoiding the need for these to be entered manually and reducing the associated risk of error.

As noted above, the system also has many control features to aid review of computations.

A comprehensive technology solution

Abacus Life is developed by Deloitte. With over 75 tax, IT, ERP and consulting specialists, we are able to provide clients with a unique combination of tax management and strategic consulting services, supported by market leading software solutions.

The software is an integral part of the Abacus suite of products, having been developed from our highly successful general corporate tax software package. Life computations can be linked to Abacus Group, so that group relief can be fed directly into Abacus Life from the group matrix. For clients who wish to automate the compliance process, there is the potential to set up direct links into Abacus Life from spreadsheets or accounts packages. It is also possible to link to other software in the Abacus family, such as AbacusOrganiser for controlling deadlines.