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In 2003, PowderJect was bought by an American company that paid the Draysons’ offshore companies more than £30m for their shares. The money was sent to the Isle of Man, beyond the grasp of the UK Inland Revenue.

Financial experts estimate that such an arrangement could have helped the Draysons to avoid at least £3m in capital-gains tax on the sale of the shares. There may also have been inheritance tax benefits.

They could also have added to their fortune, tax free, by investing in shares, property and boats via offshore trusts and companies.

Mike Warburton of accountants Grant Thornton said: “Although I cannot comment on the Draysons’ circumstances, this type of offshore scheme was used to minimise British tax bills. However, the chancellor blocked this loophole in his March budget.”

Labour was hit by a scandal in 1998 after it emerged that Geoffrey Robinson, then a Labour Treasury minister, benefited from an offshore trust.

Drayson’s offshore links are the latest problem to beset his political career. He first rose to public prominence in 2002 for winning the contract to supply a smallpox vaccine to the government shortly after donating money to the Labour party.

The government has refused to release the minutes of a private meeting held between Drayson and the prime minister before the contract was awarded.

It has led to questions as to whether Drayson had any inside knowledge or influence.

However, he and the government were cleared of any wrongdoing by the National Audit Office and a parliamentary committee that investigated the matter.

Last year, Drayson was ennobled by Blair and donated £500,000 to the Labour party within weeks. He gave a further £500,000 last December and was appointed minister for defence procurement in last week’s reshuffle.

Yesterday a spokesman for Drayson said: “When Lord Drayson was an active businessman, some of his and his family’s financial interests were held in trusts offshore.

“However, since entering public life Lord Drayson took steps to ensure the trusts came onshore and would be taxed accordingly.

“This move was completed last autumn. As a minister he abides by the ministerial code.”

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