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How To Handle Increasing Tax Rates – Sell or hold? – Barclays Wealth White Paper

Matt Brady

Barclays Wealth

1 November 2010

The approaching end of 2010 will bring to a close a period of historically low income tax rates. For several years, owners of financial assets have enjoyed a maximum tax rate of 15 per cent on long-term capital gains from most common types of financial assets. As things now stand, in 2011 federal tax rates will revert to their earlier levels, with further increases scheduled in 2013 and afterward. Deciding whether or not to accelerate a potential sale to take advantage of the current rates will be an important factor in managing a portfolio, but the decision involves a number of factors.