1,640 taxpayers a year on average have been forced to apply for refunds on inheritance tax (IHT) after assets they inherited plunged in value, according to private wealth law firm Boodle Hatfield.

Boodle Hatfield believes recent volatility in global stock markets means many investors are likely to have made significant losses in the past year and will be looking to claim relief on IHT paid.

Refunds on IHT for investment losses, known as IHT share loss relief, allows those ...