Tony Blair used a previously undisclosed trust to receive payments for his work as a consultant, it has emerged.

An investigation by The Times newspaper found the former prime minister used a so-called “interest in possession” trust, which is believed to confer tax advantages.

Two former advisors to Mr Blair said the special trust, which does not have to file accounts, was set up after contact between a consultant hired by Mr Blair and the head of HMRC Dave Hartnett.

A spokesperson for the former Labour leader confirmed the structure existed and said it was not set up for tax reasons.

“Tony Blair did not set up this structure for reasons of tax advantage. He has paid full UK tax on all his earnings,” the spokesperson said.

“He specifically instructed the accountants who set up the structure that there was to be no tax advantage or avoidance through it.

“Neither did he receive any special 'privilege' from the tax authorities.”

Conservative MP David Davis however questioned whether the arrangements amounted to special treatment.

“These arrangements appear to have been put in place without any proper scrutiny, and are not available to ordinary taxpayers,” he told the Times.

The former shadow home secretary called for “an inquiry into special treatment of high-profile individuals by HMRC” by MPs and has written to the House of Commons Public Accounts Committee expressing his view.

Since leaving office in 2007 Mr Blair has worked as an advisor for a number of countries including Kuwait, Azerbaijan, and Kazakhstan.

The latest revelation comes ahead of the long-anticipated release of the Chilcot Report into the Iraq War, which is expected to thrust the former PM back into the public eye.