> For the complete documentation index, see [llms.txt](https://docs.recap.io/uk-tax-guide-for-individuals/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.recap.io/uk-tax-guide-for-individuals/cryptocurrency-tax/capital-gains-tax/allowable-costs-for-cgt/exchange-fees.md). # Exchange fees HMRC has also set out which exchange fees can and cannot be deducted from gains as an allowable incidental cost. Below is a list of common fees charged by exchanges and whether or not they are an allowable incidental cost: | Situation in which an exchange fee may be incurred | Tax Treatment of fee for CGT purposes | | --------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | **GBP for FX** - Exchange (swap) sterling for a fiat currency other than sterling (ie USD or EUR) | **Not allowable** – not an allowable incidental cost of acquiring or disposing of a cryptoasset token | | **FX for GBP** - Exchange (swap) fiat currency other than sterling (ie USD or EUR) for sterling | **Not allowable** – not an allowable incidental cost of acquiring or disposing of a cryptoasset token | | **Deposit GBP** - Deposit sterling with an exchange | **Not allowable** - Sterling isn’t an asset for CGT purposes so it is not an allowable cost | | **Deposit FX** - Deposit fiat currency other than sterling (ie USD or EUR) with an exchange | **Not allowable** - the depositor retains beneficial ownership of the fiat currency (ie USD), so there’s no acquisition or disposal that the costs can be attributed to | | **Trade token swap -** Exchange (swap) token A for token B | **Allowable** - the fee paid is in relation to the whole of the transaction, that is for a disposal of one asset and the acquisition of another asset. This means that the fee is attributable to both assets. HMRC’s view is that this fee would be allowable as a deduction in computing the disposal in respect of token A, and that it would be allowable as a deduction in computing the eventual disposal of token B. However, a sum may be allowed as a deduction only once in computing a disposal. Therefore the cost should be apportioned between both assets (Token A and Token B) on a just and reasonable basis. HMRC will accept apportioning this fee equally between the assets disposed of and the assets acquired (that is a 50/50 split), or a different approach will be considered if it is just and reasonable. | | **Trade for GBP** - Dispose of tokens for sterling | **Allowable** - this is as an incidental cost of disposing of the tokens | | **Trade for FX** - Dispose of tokens for fiat currency other than sterling (ie USD or EUR) | **Allowable** - this is as an incidental cost of disposing of the tokens | | **Withdrawal of GBP** - Withdraw sterling from the exchange | **Not allowable -** Sterling isn’t an asset for CGT purposes so not an allowable cost | | **Withdrawal of FX -** withdraw fiat currency other than sterling (ie USD or EUR) from the exchange | **Not allowable -** the withdrawer retains beneficial ownership of the fiat currency other than sterling so there’s no acquisition or disposal that the costs can be attributed to | --- # Agent Instructions This documentation is published with GitBook. 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