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He added: 'The money has been invested by the Duchy of Lancaster – not her – and the money doesn’t go in her pocket’ and would be used for the upkeep of palaces and pensions for retired staff.

Mr Arbiter said her tax affairs being front page wouldn't be ‘uncomfortable’ for the Queen because ‘anyone with an ounce of financial nous knows profits coming into the UK from offshore is taxed at the full whack’.

The firm has been under investigation by the Financial Conduct Authority, which last month said it was not a responsible lender.

The Dover Street fund also invested in Threshers, the chain of wine shops which went bust in 2009 owing £17.5million in tax and costing almost 6,000 workers their jobs.

The Queen is being shamed to take the heat off true tax 'hypocrites' after the Paradise Papers revealed £10million of her cash was ploughed into an offshore fund, royal experts said today.