Westminster council are planning a voluntary mansion tax for those whose property is worth over £10 million.
The tax, which is due to be collected in April, we be an extra £1376 per property, doubling the amount currently owed to the council. This would raise an extra £2.7m a year if every viable homeowner opted to pay, which is an estimated 2000 properties.
The council argued that current rates, which will still be collected alongside the mansion tax, have not kept up with property price inflation.
The borough has the lowest council tax in the country.
Leader of Westminster Council, Nickie Aiken, said: “This scheme might have its cynics, but I have spoken to very wealthy people who want to help the borough more.”
She added: “Westminster is home to some of the poorest and richest people in the country and some of the most expensive real estate in the world.”
The policy of a compulsory mansion tax has been previously proposed by the Labour and Lib Dems. Westminster council is lobbing for it to eventually become mandatory in the borough, and says other councils could implement the voluntary payment to the top 2% property worth in their area.