ENGLAND’S elite families are concealing at least 35 per cent of their inherited wealth, according to new research. 

Analysing historical data spanning 100 years, London School of Economics Professor Neil Cummins identified over 9,000 dynasties where £9 billion of their wealth is “missing.”

The paper, published in The Economic History Review this month, looks at probate records from 1892 to 1992 to compare the declared wealth at death before and after 1920 — the year when inheritance tax rose from 2-3 per cent to 85 per cent for the wealthiest. 

After calculating the expected flow of inherited wealth after 1920, and taking into account the impact of war and death taxes, he found that the declared wealth of certain elite families was significantly lower than expected. 

While the proportion of the top 1 per cent has declined over the last century due to increased wealth and death taxes on the elite, the research reveals that at least 28 per cent of this decline can be attributed to hidden wealth. 

Professor Neil Cummins said: “Even the grandest of fortunes can be diluted or destroyed by marriage choice, mad inheritors, disastrous investments, betrayal, theft, stupidity and chance. 

“However, you’d have to be extraordinarily naïve to believe that the wealth of these families all suddenly dropped after 1920, precisely coinciding with the advent of high inheritance taxes.”

Mr Cummins said it was likely that the figure is even higher as he was only able to calculate the hidden wealth of a small cohort of England’s wealthiest families. 

The research also found that  families who’ve concealed their inherited wealth were more likely to appear in the Paradise Papers and Offshore Leaks Database of individuals and firms involved in illegal tax evasion.