Hunter v. Attorney-General [1904] UKHL 865 (15 March 1904)

Only the portion of the insurance premium actually paid in cash by the taxpayer qualifies for deduction under section 54 of the Income-Tax Act 1853; sums advanced by the insurer as a loan do not constitute 'payment' by the taxpayer for deduction purposes.

Citation: [1904] UKHL 865
Parties: Petitioner and Appellant: Robert Lewin Hunter; Respondent: Attorney-General
Jurisdiction: United Kingdom
Judgment Date: 15 March 1904
Procedural Posture: Appeal / House of Lords (on Appeal From Court of Appeal in England)
Outcome: Appeal dismissed; judgment of the Court of Appeal affirmed.
Legal Topics: Income Tax Deductions, Life Insurance Premiums, Interpretation of 'paid' Under Income Tax Act 1853

Tax Law Insurance Law Income Tax Deductions Life Insurance Premiums Interpretation of 'paid' Under Income Tax Act 1853

Case Brief

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Parties

Robert Lewin Hunter

Petitioner and Appellant

Attorney-General

Respondent

Procedural Posture

Appeal / House of Lords (on Appeal From Court of Appeal in England)

Legal Issues

1 Whether a taxpayer can deduct the full amount of life insurance premiums from taxable income when only part was paid in cash and the remainder was advanced by the insurance company as a loan.

Ratio Decidendi

Court Disposition

Appeal dismissed; judgment of the Court of Appeal affirmed.

Orders

Appellant not entitled to deduct the full premium; only cash paid is deductible.
Appellant to pay costs.