(1)In proceedings for a recovery order, a person who claims that any property alleged to be recoverable property, or any part of the property, belongs to him may apply for a declaration under this section.
(2)If the applicant appears to the court to meet the following condition, the court may make a declaration to that effect.
(3)The condition is that—
(a)the person was deprived of the property he claims, or of property which it represents, by unlawful conduct,
(b)the property he was deprived of was not recoverable property immediately before he was deprived of it, and
(c)the property he claims belongs to him.
(4)Property to which a declaration under this section applies is not recoverable property.
Cases considering section 281 10
[2021] UKSC 49 · 3 November 2021
A person claiming ownership of alleged recoverable property may seek a declaration in the specified circumstances, and property covered by the declaration is not recoverable. The provision demonstrates statutory protection of third-party rights (see para [33]).
[2026] EWHC 2509 (KB) · 12 October 2026Limits
Section 281 allows a person claiming that alleged recoverable property belongs to them to apply for a declaration in recovery proceedings. The court treats the ownership question as one governed by English conflict-of-laws rules. (see paras 18; 21)
The court notes that the provision says it may make a declaration if the applicant meets the condition, but leaves any residual discretion unresolved because it is unnecessary at this stage. (see para 20)
The court separates the statutory conditions concerning deprivation and recoverable property from the private-law ownership question in paragraph (c). (see paras 18; 23)
The court treats the requirement that the applicant was deprived by unlawful conduct as a statutory concept whose meaning is supplied by PoCA, not the applicable-law issue being decided. (see para 23)
The court treats the recoverable-property condition as a statutory concept defined by PoCA, distinct from the ownership issue. (see para 23)
Whether property belongs to an applicant depends on the proprietary rights asserted and the applicable conflict-of-laws rules. Section 281 does not itself define that phrase. (see paras 19; 21-23)
The court sets out that property covered by a section 281 declaration is not recoverable property. (see para 18)
[2026] EWHC 1745 (Admin) · 15 July 2026Defines
Confirms Enspire’s statutory entitlement, in future Part 5 civil recovery proceedings, to apply for a declaration concerning property claimed to belong to it. The entitlement was a material safeguard against the need for joinder. (see paras [24(v)], [27], [36])
Applies the substantive criteria for a declaration under section 281: the applicant must have been deprived by unlawful conduct of property belonging to them which was not itself recoverable property. (see para [24(v)])
What each judgment says about section 281 is in the case-law panel in the full Act.
386.Property which has been stolen (or is the result of some other unlawful conduct comprising the deprivation of a true owner of his property) is property obtained through unlawful conduct, and therefore potentially recoverable by the enforcement authority. But section 281 gives the claims of a true owner precedence over those of the enforcement authority. Where civil recovery court proceedings have begun in respect of property, a true owner is entitled to request a declaration from the court that he has a valid claim to it because he was deprived of it (or of property which it ‘represents’) by unlawful conduct. This need not be the unlawful conduct on which the authority relies. So if, for example, a drug trafficker steals money from a person and invests it in drug trafficking, the enforcement authority may bring proceedings in respect of the property that the drug trafficker has obtained through the drug trafficking. But the victim would still be able to claim that part of the property belonged to him, even though the authority was relying on the drug trafficking, rather than the theft. The effect of such a declaration is that the property ceases to be recoverable by the Director or by the Scottish Ministers (subsection (4)).
387.Subsection (3) makes clear that this exception only applies to the original true owner of property. It would not benefit someone who has for example stolen property from its original owner, but who in turn has had that property stolen from him. The property would have become recoverable when it was stolen from the original owner; the original owner will be able to request a declaration even if it is stolen again, whereas the person who first stole the property will not.