Two accountants were set to appear in court on 20 August to face charges in connection with an alleged £1m tax relief fraud .

In a statement, Jaswant Narwal, deputy head of fraud at the Crown Prosecution Service (CPS), said that it had charged Edward Watkin Gittins and Martin Calcutt with cheating the public revenue by abusing tax relief that allows individuals making gifts to charity to offset the market value of the gifts against their tax liabilities.

In addition, Calcutt faces a charge of forgery.

Both men are due to appear at City of London Magistrates' Court today.

Narwal said: 'It is alleged that Mr Watkin Gittins designed the scheme while he and Calcutt both implemented it. It is also alleged that forged documents were supplied in order to induce HMRC to grant their claim for tax relief.'

The alleged offences took place between 29 March 2004 and 16 February 2007. Gittins was a director of Montpelier, an Isle of Man-based tax consultancy whose offices were raided as part of an investigation by HMRC in 2010.

Mark Spragg, solicitor for Gittins, said: 'These matters relate back to 2004-05 and a criminal investigation commenced in about 2006-07. Mr Gittins has cooperated throughout the investigation and answered questions and supplied material to HMRC. He denies any wrongdoing and is relishing the opportunity to finally clear his name.'

HMRC declined to comment.