On March 2006 she claimed she had an affair with the singer despite his long-term relationship with an heiress.
Commenting on rumours of a fling, the 34-year-old 'It Girl' said: "If nothing had happened between James and I then I would have come right out and said nothing had happened. And I haven't done that, have I? That's your answer - it's pretty easy to work out what I am saying. It's not rocket science. However, I am quite deliberately stopping short of going into detail. I'm keeping my dignity here. I really would like the whole thing just to blow over."
At the weekend, Miss Palmer Tomkinson had refused to comment about her relationship with Blunt. That led his girlfriend of 18 months, Camilla Boler, to accuse her of publicity seeking.
Miss Palmer Tomkinson hit back, saying: "I didn't even know James had a girlfriend when it happened. Now she's come out of the woodwork and says I made all this up for PR. Well, first of all, I never talk about my private life. And secondly, I'm not the one who needs publicity out of the two of us."
Blunt, a former Household Cavalry officer, apparently spent a night with Miss Palmer Tomkinson after she saw him perform at New York's Webster Hall earlier March 2006.
Sources say the pressures of touring have caused his relationship with Miss Boler to falter. She is an artist and aspiring singer and daughter of the late tycoon Stephen Boler, who set up Kitchens Direct.
Miss Palmer Tomkinson seems to have been holding a candle for Blunt for some time.
In her column in Closer magazine, she wrote: "My pal James Blunt came round for a cup of tea during rehearsals for the Brit Awards last week."
Another column said: "I was in heaven last week when I went to see the incredibly talented James Blunt in concert. I caught up with him after the show and he was absolutely charming."
A third piece said: "James is truly captivating and charming."
She has also told how she got over her split from Matalan heir Jamie Hargreaves by "listening to a lot of James Blunt".
She has had a relationship with another millionaire, Damien Aspinall, and was engaged to Greg Martin, son of Beatles producer George.
On April 19th 2006 Blunt broke with Camila Boler saying Tara was the "other woman".
Tara was said to be “besotted” with James after meeting him in New York and the couple had an affair.
However, Tara has now got over the singer. She told the Mirror: “One thing I will say is I was never ever, ever, ever, ever, ever, told by James Blunt that there was a girlfriend. One thing’s for sure I don’t think I did anything wrong. I was deceived by this guy and that’s it. I was never told there was a girlfriend, in fact James told me he had split up with her at Christmas. I am certainly not the type of person who would tread on somebody else’s toes. I completely disrespect women who do that to other women, I think it’s disgusting, it’s horrible to do that to another woman. I wouldn’t do it.”
“I don’t know a James Blunt,” she concluded. “I only know a James C**t.”