According to some reports, Goldman Sachs could move up to one fifth of its 5,000 London-based employees to Spain.

The Goldman Sachs bank, UK’s biggest contributor of revenue in the financial sector, is in talks with the Treasury over the temporary bonus tax announced in the recent pre-Budget report.

Last week, Barclays’ chief executive, John Varley told reporters about the temporary levy of 50 percent on individual discretionary bonuses of over 25,000 pounds could damage the city.

In a recent interview with BBC, the banker condemns the government’s decision of not making a proper “predictable tax environment” in the UK and urged for a “level playing field” in the face of global competition.

In similar news, HR Revenue & Customs has affirmed that the bonus tax does not apply to insurance companies, asset managers and stockholders.

Worries had been increased over the meanings of a ‘bank’ as used in the draft legislation and HMRC has accomplished “that the original definition of a ‘Bank’ did not effectively exclude all the groups we intended to exclude”.

Therefore, the draft legislation is being modified to exclude stock brokers and insurance companies.