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As it happens, LTCG
is the only type of markets-derived income which has a zero rate. Most
investors will take this as a clear forewarning that this privileged
state may not last for long. Something roughly similar was done last
budget when the qualifying period for long-term status for bond funds
was increased from one to three years.
While tax will
obviously have to be paid on gains made in the future after (if) the
rules change, investors can definitely do something about the long-term
gains that they are sitting on right now. They should sell such
investments now and immediately buy them again. That way, they will
book their profits at zero tax, making such gains safe from future tax
changes. There isn't too much of a risk, because the worst that could
happen is that the tax laws won't change. In that case, you will have
to wait for a year for your investments to turn long-term again, but
you won't lose on taxes.
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