I am trying to understand the tax implication (taking into account UK cost basis and Bed/Breakfast Rules)
Here is the example I am trying to understand
- I bought 10 ETH at price of £1700 per ETH (total £17K)
- Sometime later (more than 30 days) ETH price is £2000 per ETH (total £20K).
- I swap from ETH to BTC (imagine this means I got a full BTC for simplicity). This is a taxable event and it would mean I have £3000 Capital Gain which is subject to CG rules, as far as I know.
- Less than 30 days, I swap one BTC back to ETH but at this swap I got 11 ETH instead of 10.
Does this mean I will be taxed on both swaps or it means I just bought 11 ETH with £17000? or it means the extra ETH I got will be considered a gain and I will need to pay tax for its price at the time of the swap?