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Stamp Duty on £400,000 Property

Calculate stamp duty on a £400,000 property

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Standard rates apply - replacing main residence

Disclaimer: This tool does not constitute financial advice. We do not recommend taking actions based solely on these results. The calculator makes assumptions and results may be inaccurate due to changes in government policy, interest rates, or personal circumstances. You use this information at your own risk. We can't guarantee to be perfect, so do note you use the information at your own risk and we can't accept liability if things go wrong. For official guidance, visit Gov UK.

Quick Answer: Stamp Duty on £400,000

First-Time Buyer

£5,000

Standard Buyer

£10,000

2.50% effective rate

Additional Property

£30,000

Includes 5% surcharge

How Stamp Duty is Calculated on £400,000

Stamp duty is calculated using tiered rates. You pay different percentages on different portions of the property price, similar to income tax bands.

Standard Buyer Breakdown

BandRateAmountTax
£0 - £125,0000%£125,000£0
£125,000 - £250,0002%£125,000£2,500
£250,000 - £400,0005%£150,000£7,500
Total Stamp Duty£10,000

Additional Property Breakdown

ComponentAmount
Base Stamp Duty£10,000
5% Additional Property Surcharge+£20,000
Total (Additional Property)£30,000

First-Time Buyer Relief

First-time buyers pay £5,000 on a £400,000 property. You only pay 5% on the portion above £300,000.

First £300,000£0 (0%)
Remaining £100,000£5,000 (5%)
Saving vs Standard£5,000

Tips for Buyers at This Price Point

  • First-time buyers: You're eligible for relief. Make sure you haven't owned property anywhere in the world before.
  • Negotiation tip: Consider negotiating the price down slightly to reduce your stamp duty bill.
  • Budget planning: Factor stamp duty of £10,000 into your total purchase costs alongside legal fees, surveys, and moving costs.

What Can You Buy for £400,000?

At £400,000, buyers are entering the upper end of the family home market in most English regions outside London and the South East. In the Home Counties and commuter belt towns such as Guildford, St Albans, and Tunbridge Wells, £400,000 typically delivers a two-to-three-bedroom property in a good area. In cities like Bristol, Bath, and Oxford, this budget reaches a three-bedroom terrace or semi-detached house in desirable neighbourhoods. In the Midlands and North of England, £400,000 accesses a large four-to-five-bedroom detached house with a substantial garden, often in a premium village or suburban location. In Edinburgh, this price covers a spacious three-bedroom flat in the New Town or a family home in desirable suburbs. In London, £400,000 remains in the one-to-two-bedroom flat range in outer zones (4–6). First-time buyers still benefit from partial relief at this price, paying 5% only on the portion above £300,000 rather than standard rates.

Total Cost of Buying at £400,000

At £400,000, first-time buyers pay £5,000 in SDLT (5% on the £100,000 above the £300,000 FTB threshold), while standard buyers pay £10,000. Additional property buyers face £30,000. A 10% deposit of £40,000 combined with stamp duty and ancillary costs means first-time buyers need approximately £48,000–£52,000 in total cash, while standard buyers need £53,000–£57,000. Mortgage affordability is a key consideration: a £360,000 mortgage (10% deposit) typically requires a combined household income of £80,000–£90,000 based on standard 4–4.5x income multiples. Conveyancing fees at this price range from £1,300–£2,000, and a homebuyer survey costs £400–£750. Buyers stretching to £400,000 should leave a financial buffer of at least £3,000–£5,000 for unexpected costs during the first year of ownership.

Frequently Asked Questions

How much stamp duty on a £400,000 property?

For a £400,000 property in England: First-time buyers pay £5,000, standard home movers pay £10,000, and additional property buyers pay £30,000 including the 5% surcharge.

Do first-time buyers pay stamp duty on £400,000?

Yes, first-time buyers pay £5,000 on a £400,000 property. They pay 5% only on the amount above £300,000.

What is the stamp duty on a £400,000 second home?

The stamp duty on a £400,000 second home is £30,000. This includes the standard SDLT of £10,000 plus a 5% additional property surcharge of £20,000.

What is the effective stamp duty rate on £400,000?

For a £400,000 property, the effective stamp duty rate is 2.50% for standard buyers and 7.50% for additional property purchases.

How much stamp duty do first-time buyers pay on a £400,000 property?

First-time buyers pay £5,000 in stamp duty on a £400,000 property. This is calculated as 0% on the first £300,000 (the FTB nil-rate band) and 5% on the remaining £100,000. By comparison, a standard buyer pays £10,000 and an additional property buyer pays £30,000. FTB relief saves £5,000 at this price point.

What income do I need to buy a £400,000 house?

With a 10% deposit (£40,000), you would need a mortgage of £360,000. Most lenders offer 4 to 4.5 times household income, so a combined income of approximately £80,000–£90,000 is typically required. Some lenders offer higher multiples for certain professionals (doctors, solicitors, accountants), and specialist lenders may stretch to 5x income. A whole-of-market mortgage broker can identify the most suitable products for your circumstances.

Is £400,000 above average for the UK?

Yes, £400,000 is significantly above the UK average house price of approximately £285,000. However, regional variation is enormous: £400,000 is close to the average in the South East and well above average in the North. In London, where the average exceeds £525,000, this price is below the borough average in most areas. The property you get for £400,000 varies dramatically depending on location.

Other Price Points

Related Guides

Note: These calculations are for properties in England and Northern Ireland. Scotland uses LBTT and Wales uses LTT with different rates.

Scotland LBTT Calculator →Wales LTT Calculator →