Under the Minister for Finance's new saving scheme proposals, the investment account would be subject to "an annual flat-rate tax to the value of assets held in the account above a tax-free threshold" which "could potentially serve as the sole form of taxation on investments made through the new account."
In his opening statement, Dr Roantree encouraged the Coalition to explore the Norwegian mode:
"This subjects only returns in excess of an investor's risk-free return allowance to taxation, ensuring that high-return investments are taxed while low-return investments are not...
Alternatively, we could look closer to home and at the way we currently tax private pensions. Applying upfront tax relief to investments in the proposed new account while taxing any drawdowns would similarly ensure that high-return investments are taxed while low-return investments are not. "