Inheritance tax calculation

fixt

I'm 77 years old with £40000.00 savings in form of SIPP . An investment ISA currently 10000.00 and savings ISA £8000.00. Three properties - one I live in with my wife with value £500,000.00 and two rental properties together valued at £500,000.00.
If I should die the whole lot will pass to my wife - tax free as I understand it.
However when my wife dies and passes it all to the our 3 children will all be taxed without any of the concessions I had when it passed over to my wife?
I hope it makes sense.

Keep_pedalling

No, you nil rate band and residential NRB would be transferable to your wife’s estate so would not be lost. 

MallyGirl

In that scenario, on your wife's passing second, your estate would have an IHT bill for the value over £1m. They would then additionally pay income tax when they take from the inherited SIPP (at their prevailing rate)

Aretnap

On current rules (or changes to rules on pensions that can be reasonably anticipated) that would leave your/your wife's estate with a bill of around £23K on an estate of around 1.06 million, when whoever dies second passes on. Maybe a bit more if the value of your houses goes up between now and then, maybe a bit less if you spend some of your money. Either way, I suspect your children will be OK.