Powering Your Council’s Future with Confidence and Compliance
As part of the UK Government’s levelling-up agenda, a growing number of local authorities are joining together to form Combined Authorities and secure Devolution Deals. These changes bring new powers, funding, and responsibilities – but also complex tax implications. From new VAT and Employment Taxes arrangements to PFI transitions, and subsidy control rules, the risks are real.
PSTAX is the UK’s leading tax advisory firm for public sector organisations. We support over 300 local authorities, helping them manage structural change with clarity and confidence.
As Combined Authorities grow in number and scope, PSTAX is your trusted partner for tax compliance, governance, and long-term planning.
Why Combined Authorities Trust PSTAX
Deep Sector Expertise
We’ve been at the forefront of every recent Local Government Reorganisation and now apply the same experience and rigour to Combined Authorities. Whether you’re preparing for a new devolution deal, creating a new Combined Authority, or restructuring as part of a Mayoral setup, PSTAX provides expert, futureproof tax guidance.
Specialist Support for Devolution & Combined Authorities
Our tailored advisory services include:
✔️ VAT registration
✔️ Partial Exemption
✔️ VAT implications of joint and devolved functions
✔️ Section 33 compliance and VAT recovery strategy
✔️ Employment taxes and payroll integration
✔️ Treatment of devolved funding and grant structures
✔️ Construction Industry Scheme (CIS) management
✔️ Corporation Tax for new entities and subsidiaries
✔️ Stamp Duty Land Tax (SDLT) and property transfers
✔️ Employment Status and IR35/OPW compliance
✔️ HMRC engagement and negotiation support
Proactive, End-to-End Service
From policy design to post-implementation, our approach ensures that all tax risks are identified, managed, and resolved efficiently.
What Is a Combined Authority?
Combined Authorities are formal legal entities made up of two or more councils working together to deliver regional powers and responsibilities, typically under a directly elected Mayor. These bodies manage devolved budgets in areas such as:
- Transport and Infrastructure
- Economic Development
- Adult Skills and Education
- Housing and Planning
- Public Health and Safety
As responsibilities increase, so too does the complexity of tax administration – and that’s where PSTAX comes in.
Why Early Action Matters
Combined Authorities face the same risks as traditional reorganisations — but often with tighter timelines, more complex funding, and greater public visibility. Early, expert tax planning is essential to avoid costly errors and ensure funding streams remain secure.
Don’t wait until your new structure is in place to start planning.
PSTAX ensures your authority is ready from day one.
Talk to the Experts
Whether you’re in the early stages of a devolution deal or actively forming a Combined Authority, PSTAX is ready to support you. Contact us to learn how we can help you transition safely, legally, and efficiently.