[2025] EWCA Civ 1211

This appeal concerns the interpretation and effect of section 53(1)(b) (“s.53(1)(b)”) of the Law of Property Act 1925 (“LPA 1925”), which provides that:

“a declaration of trust respecting any land or any interest therein must be manifested and proved by some writing signed by some person who is able to declare such trust or by his will.”

The principal questions of interpretation are: (1) whether the document evidencing the declaration of trust can be signed by an agent of the person whose interest in the land is the subject of the declaration of trust; and (2) if the answer to that question is, in respect of natural persons, no, how the section is to be complied with by a company, which can generally only act through the agency of natural persons.

Despite a provision in materially similar form to s.53(1)(b) having existed since the Statute of Frauds 1677 (the “Statute of Frauds”), the researches of counsel have not unearthed any case where these questions have been authoritatively determined.

The appeal also raises an important question as to the consequences of non-compliance with s.53(1)(b): assuming that a declaration of trust has been made, but there is no sufficient evidence of it in writing, what is the status and effect, if any, of the declaration of trust? Specifically, as it relates to this appeal, where the person who declared the trust subsequently transfers the property to the beneficiary, is the transfer capable of constituting a transaction at an undervalue within the meaning of section 423 of the Insolvency Act 1986 (“s.423”)?