Swapped Bitcoin for Ethereum? Traded into a stablecoin? Every crypto-to-crypto trade is a taxable event in the UK, even if you never cashed out to pounds.

What counts as a crypto trade?

A crypto trade is any time you swap one asset for another. It could be Bitcoin for pounds, Ethereum for Solana, or BTC for a stablecoin like USDT. If you’ve ever used a decentralised exchange or swapped tokens in your wallet, you’ve made a trade.

Why crypto-to-crypto trades are taxable

HMRC doesn’t treat crypto as money. When you trade one crypto for another, you’re selling one asset to buy another. That sale is a ‘disposal’, and it’s subject to Capital Gains Tax based on the change in value since you originally acquired it.

This is where many people get caught out. Selling crypto for pounds? Obviously taxable. But swapping ETH for SOL? That’s taxable too, even though you never saw any money.

Worked example: Emily swaps ETH for Solana

Emily buys 2 ETH for £2,400 (£1,200 each) in March 2023.

In August 2025, she swaps 1 ETH (now worth £2,100) for Solana.

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Disposal proceeds: £2,100. Cost basis: £1,200. Capital gain: £900.

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The Solana she acquired has a cost basis of £2,100 for future disposals.

Try this example in Recap’s calculator. 

Capital Gains Tax rates

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Don’t forget trading fees

Many crypto trades come with fees. When those fees are paid in crypto, they’re a disposal in their own right, you’re spending crypto to pay for a service. Even transferring crypto between your own wallets incurs a network fee that’s technically taxable.

These are usually tiny amounts, but they add up over hundreds of transactions. Recap tracks them automatically.
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What about stablecoins?

Trading with stablecoins like USDT or USDC is taxed the same way. It’s still a disposal subject to CGT. And even though stablecoins aim to hold a stable value, small fluctuations can create unexpected gains or losses. Many traders are surprised by this, so keep an eye on it.
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Could I be classed as a financial trader?

In very rare cases, HMRC might classify your crypto activity as financial trading. If so, your profits would be taxed as self-employed business income (subject to Income Tax and National Insurance) rather than CGT. HMRC has confirmed this only applies in “exceptional circumstances”, the vast majority of crypto users will pay CGT.
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CARF: your exchange is now reporting to HMRC

From January 2026, UK exchanges are required to report your transaction data directly to HMRC . Every trade, transfer, and deposit will be visible.

55–95% of UK crypto holders are estimated to be non-compliant. The window for easy voluntary disclosure is closing. Use Recap and speak to a Crunch accountant to get ahead.
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FAQs

Is swapping one crypto for another taxable?

Yes. HMRC treats every crypto-to-crypto swap as a disposal. You need to calculate the capital gain or loss based on the fair market value at the time of the trade.

Are stablecoin trades taxable?

Yes. Even though stablecoins aim to maintain a stable value, small fluctuations can still create taxable gains or losses.

Do I pay tax on trading fees?

Yes. Fees paid in crypto are themselves disposals, subject to CGT.

What’s the share pooling method?

It’s the UK’s required method for calculating cost basis. It uses three rules (same-day, 30-day bed and breakfasting, and Section 104 pool) to work out the cost of each disposal. See our main Crypto Tax Guide for the full breakdown.

What’s the bed and breakfasting rule?

If you sell crypto and buy the same asset again within the next 30 days, the repurchase price is used as the cost basis for the sale (matched first-in, first-out). This prevents creating artificial losses.
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Need Help With Your Crypto Trades? 

If you have a lot of transactions, tracking trades and calculating gains can get tricky. Crypto tax software simplifies this. It tracks your trades, applies asset valuations, and calculates your taxable gain. Get started at recap.io.

For any finance and accounting help, our Crunch advisors are ready to assist.

The information provided in this article is for general informational purposes only and should not be construed as financial or tax advice. We recommend consulting with a qualified tax advisor or financial professional who can provide personalised advice tailored to your specific circumstances.

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