According to the Telegraph, the bank is considering its options following the Government’s 50 per cent tax on bonuses above £25,000 and the introduction from April 2010 of a 50 per cent income tax for those earning more than £150,000 a year.
The report states that the investment bank has asked an internal team to review a number of strategies, including taking the whole division offshore.
Among those areas believed to be under review is Goldman’s proprietary trading arm, which is believed to make as much as 90 per cent of the bank’s profits. Geneva is seen as the favoured destination for the desk, with performance fees to be negotiated with the Swiss government.
Foreign exchange teams and the banks back office operation are also under review.
Goldman’s has been quick to point out that it has paid £1.1bn in corporation tax last year. The group has a total of 5,000 London employees.