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As a rule of thumb, the outer face of the fence should be placed along the boundary. The posts should stand on your land.
Building a Fence on a Boundary Line In most areas, fences can be installed between 2-8 inches from the boundary line. However, some areas may allow you to build right up to the property line. Make sure you contact your local council to find out what applies to your area.
Property boundaries are often identified above ground with the use of stakes to mark the corner points. Years ago, wooden stakes were often used to mark property lines. More recently, long metal posts that are visible about 1 to 2 feet above ground have been used.
The short answer is yes, subject to serving a valid notice and following the processes set out in The Party Wall Act. The party wall act only applies to structures (ie: a wall with a foundation), it does not apply to timber fences or other screens.
However no formal agreement is needed for a wall up to the boundary line, the neighbour just needs not to object in writing. No work may commence on a wall astride the boundary line until all neighbouring parties have agreed in writing to the notice (or a revised notice).