Tax question: Anyone from UK trading on Polo/Kraken?

[igeass]

I am residing in the UK (and not US citizen) and started trading on Polo and Kraken with about 1btc for practice. I made a loss of about 0.15btc. Recently, I realised that kraken and polo were based in the US so do I have to report the loss to IRS? Also, say I made a profit of .5btc. Will I have to report this to IRS or am I under the UK law where I do not have to report as long as the amount doesn't exceed the capital gains allowance?

Cheers

[pawel7777]

As non-US citizen/resident you don't deal with IRS at all. You do have to declare income to HMRC though, I'm not sure but don't think CG is applicable here, as you're talking about continuing activity, so you may be liable to file annual return and pay tax. Just email them and ask.
They unlikely would chase anyone for BTC0.5 taxable gain, it's simply not worth their time.

[European Central Bank]

why report a loss? they're interested in profit. and the irs certainly isn't interested in you.

it's possible the uk tax man could ask them for your records but you'd have to be doing some pretty big numbers. how verified are you on both of them? both allow little or no verification if you're trading small amounts.

[pawel7777]

....
it's possible the uk tax man could ask them for your records but you'd have to be doing some pretty big numbers. how verified are you on both of them? both allow little or no verification if you're trading small amounts.

Both require name, address + email verification for basic level. That's enough to trace you if they wanted to. You could always provide fake details, but then if something goes wrong with your account, you could be asked to provide proof of identity or lose access to your funds.

Polo has $2k daily limit, that gives $730k/year, so rather significant.

[European Central Bank]

I trade on poloniex and deposit and withdraw regularly with a fictional name and address but i'm careful to stay below that limit and never leave anything on there. I guess it does make sense to verify if I had an alt that exploded and wanted to cash out.

[pawel7777]

I trade on poloniex and deposit and withdraw regularly with a fictional name and address but i'm careful to stay below that limit and never leave anything on there. I guess it does make sense to verify if I had an alt that exploded and wanted to cash out.

Just don't use it to store any large amounts. I recall someone posting about being locked out of his account and Polo demanding proof of id, iirc it was due to some security concerns not because of going over the limit.