Taxes on intra-wallet swaps?
Taxes on intra-wallet swaps?
For context, I’m based in the UK. I bought some crypto from coinbase in October and I’ve made some gains. I’m planning to take some profit but I don’t want to sell on coinbase for fiat. I’m thinking of doing atomic swaps in my atomic wallet to usdc and hold my profits in usdc till the next bear market.
Are there any taxes on p2p swaps? Is it possible to sell this usdc for fiat in a different country cex in the future?
Much appreciated.
In the UK, it’s fairly simple:
You are taxed at the moment you exchange an asset.
Let’s say you bought $ETH at 3000, sold it on chain for USDC at 3600.
You are liable for capital gains on the 600 profit.
Regardless of how you’re storing it, usdc, gbp in your bank account, bitcoin… you are taxed at the moment you exchange.
If you just move an asset from one wallet to another, it is not taxed.
Regardless of where you move to in the future you would be liable for said tax in the uk, as you are a uk tax citizen at the time of the exchange.