King Charles employed Annabel Elliot as chief estates designer after his marriage to Camilla in 2005.

Elliot was paid hundreds of thousands of dollars to decorate and renew the Duchy’s heritage holiday homes in Cornwall, Wales and the Isles of Scilly.

The Prince of Wales, 42, assumed control of the Duchy of Cornwall, the Royal Family’s 700-year-old estate providing income to the heir, after Charles ascended the throne in 2022.

According to its latest Integrated Annual Report published on Wednesday, William has opted not to retain the Queen’s sister or her design services in the 2023-2024 year.

“During the period to 8th September 2022 the Duchy paid Mrs. Annabel Elliot, the 24th Duke of Cornwall’s sister-in-law, in the normal course of business and on an arm’s length basis £19,625 (AUD$38,558) for fees and commission and £12,316 (AUD$24,197) for the purchase of furniture, furnishings and retail stock for the Duchy of Cornwall Holiday accommodation, Duchy offices and Duchy Nursery,” the report said.

“At 31st March 2024, there was £nil (2023: £nil) [nothing] remaining payable to Mrs. Elliot in respect of these.”

Sources on Wednesday confirmed to The Telegraph that William chose not to continue Elliot’s employment, “although it is not a reflection of her work”.

The sources said the Queen’s sister was completing her work according to a “temporary contract” and it had simply “finished”.

Prince William has axed Queen Camilla’s sister from the Duchy of Cornwall payroll, ending a 20-year association with the 75-year-old. Picture: Pool/Getty Images

They also said Duchy staff “no longer needed” the 75-year-old’s “guidance”.

It’s understood Elliot was paid “in the normal course of business and on an arm’s length basis” for her work.

He remuneration included “fees and commission” and reimbursement for the “purchase of furniture, furnishings and retail stock”.

She reportedly did not have any competition for the job, with the duchy previously stating its design contracts were not open to bid on.

The move comes during William’s first full year managing the estate as the new Duke of Cornwall.

He received $30 million from his first full year’s income from the duchy.

The sum mostly covers the annual official, charitable and private costs for himself, his wife Princess Catherine and their three children Prince George, 11, Princess Charlotte, nine, and Prince Louis, six.

William reportedly pays income tax on money he receives from the duchy excluding household costs but he has not disclosed the tax bill like his father has historically done.