So just wanted to make sure if i unerstood it correctly…If i were to buy say 1eth for GBP 200 pounds (fx rate GBPUSD at 1.25 at the time meaning 250usd equivalent)…then use ether to purchase some token X…lets say 5000 tokens (so 5 cents per token)…then i sell those tokens into $800 USDT (16 cent per token) and keep it as USDT. Will I be charged capital gains tax still and if so is it going to be 20%* (800-250) = 110 USD or 88GBP (assume fx rate always the same)?
Hi, all the trades would be taxed. Easiest way to figure out the calculations is to just enter them into a custom wallet on Koinly