Goldman Sachs, the investment banking and wealth management firm, is expected to pay UK bonuses in full, requiring it to pay about $1 billion in taxes to the UK Treasury, according to CityAm, the daily newspaper.

The increase in the size of the bonus pool is designed to compensate for the impact of the government’s 50 per cent levy on bank bonuses in excess of £25,000.

Bankers and investment professionals have warned the UK government that the bonus tax, coupled with a new, planned top income tax rate of 50 per cent on high earners, and a levy on non-domiciled residents, will combine to drive wealthy people from the country to places such as Switzerland and Singapore.

Goldman Sachs declined to comment.

Late last year, it was reported that Goldman Sachs’ entire 30-person management committee will receive 100 per cent of their discretionary compensation in the form of shares at risk, which cannot be sold for five years, in addition to other restrictions.