David Cameron has admitted he did make money from a stake in his father’s offshore investment fund - which he sold just four months before he became Prime Minister.

It comes after the Panama Papers leak earlier this week, which saw 11million documents from secretive Panama law firm Mossack Fonseca unveiled how the rich and famous allegedly evade tax using offshore companies

In an interview with ITV News, Mr Cameron said: "We owned 5,000 units in Blairmore Investment Trust, which we sold in January 2010. That was worth something like £30,000.

"I paid income tax on the dividends. There was a profit on it but it was less than the capital gains tax allowance so I didn't pay capital gains tax. But it was subject to all the UK taxes in all the normal way.

"I want to be as clear as I can about the past, about the present, about the future, because frankly I don't have anything to hide."

The Conservative leader also said that he received a £300,000 inheritance from his father, Ian Cameron, when he died in 2010. 

"I obviously can't point to every source of every bit of the money and dad's not around for me to ask the questions now," Mr Cameron added.

“I am proud of my dad and what he did, the business he established and all the rest of it. I can't bear to see his name being dragged through the mud. For my own, I chose to take a different path from my father, grandfather and great grandfather, who were all stockbrokers, and I have nothing to hide in my arrangements. "

The statement is Mr Cameron’s fifth on his financial affairs in four days and will do little to quell questions about his own tax affairs.

READ MORE: David Cameron financial affairs interview in full