Deep dive on ISK vs IT/CGT

Didn’t the Minister explicitly say the tax payments would be made by the relevant financial institution?

I would be inclined to agree with @Mez! that financial institutions are likely to charge for administering these payments and I can’t see the discount online brokers wanting to get involved.

Another reason why I think an ISA-type scheme with modest (but flexible) annual contribution limits would be preferable…
 
Mez! said:
It’s important to note that in Sweden, ISK providers are not required to collect the tax. They merely advise Swedish Revenue how much tax the account holder owes, and it’s added to their annual tax bill. This makes it easy for low-cost stockbrokers.

From what I understand, at this time, the government here will require SIA providers to collect the tax, and IMHO this will almost certainly rule out online low-cost stockbrokers participation.

If this is the case, you can expect to be paying a select few SIA providers such as Zurich and Standard Life etc a ~1% extra p.a. fee with penalties for early withdrawals.
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It's a valid point. I would be more optimistic that low cost providers will participate however given the simple nature of the tax, and that they do similar things already (eg stamp duty collection on share purchased).
 
Mez! said:
“Account providers would be required to administer the tax to help remove complexity for investors”
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These are weasel words. "Administer" doesn't necessarily imply pay the tax. They will see sense and do as the Swedes do; have the providers give he Revenue the necessary info to prefill PAYE and ROS systems. The EU directive sees pay the tax and prefill tax returns as equivalent.
 
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