Westminster Council is polling residents in homes worth £10m (£13.4m €11.3m) or more to see if they would like to voluntarily pay double the current maximum as a “community contribution”.
A council spokesman said the initiative, which is in its early stages, had grown from residents themselves who had expressed an interest in paying more than “comparatively small” sums relative to the charges associated with running a home in central London.
The west London borough currently levies one of the lowest council tax rates, which in the top band presently works out at £1,376 a year.
Westminster is also seeking views from all top rate band payers – some 15,000 households. It is estimated 2,000 homes in the borough fit in the £10m bracket.
Prefer to give to charity
Peter Mackie, director of Property Vision, which advises wealthy clients looking to buy in the UK, told International Adviser, if the Westminster plans could shown to be fair, robust and transparent, many would agree to pay.
“However, if it is an arbitrary slice of owners, they may worry about the implications of paying or not paying and even if it would be held on account against other changes in taxation,” he said.
“In the end, I think that most people, given the option, would prefer to pay the money to charity rather than the local council.”
If the plan gets the go ahead it is calculated to raise an extra £2.75m for the council.