Property⚡ Quick Answer — Stamp Duty on a £400,000 House
| First-Time Buyer | £5,000 |
| Home Mover / Standard | £10,000 |
| Additional Property / BTL | £30,000 |
England & NI rates from April 2025. Get your exact figure →
At £400,000, stamp duty is a meaningful expense. Standard buyers pay £10,000 — and if you're buying an additional property, the bill hits a staggering £30,000 before you've even picked up the keys.
But first-time buyers get a silver lining: FTB relief halves the standard bill to £5,000. Below we break down every scenario, compare across all UK nations, and give you the complete picture from deposit to monthly mortgage payments.
How Is Stamp Duty Calculated on a £400,000 House?
Stamp Duty Land Tax (SDLT) in England and Northern Ireland is calculated in bands — similar to income tax. You only pay the higher rate on the portion of the price that falls within each band. Here's how a standard buyer (not first-time, not additional property) is taxed on £400,000:
| Price Band | Rate | Taxable Amount | Tax Due |
|---|---|---|---|
| £0 – £125,000 | 0% | £125,000 | £0 |
| £125,001 – £250,000 | 2% | £125,000 | £2,500 |
| £250,001 – £925,000 | 5% | £150,000 | £7,500 |
| Total SDLT | £10,000 | ||
That's an effective tax rate of 2.5% on the purchase price. Use our stamp duty calculator to check a different figure instantly.
First-Time Buyer Stamp Duty on £400,000
First-time buyers benefit from a generous nil-rate band of £300,000. On a £400,000 property, you'll pay 0% on the first £300,000 and 5% on the remaining £100,000, giving a total of £5,000.
That's a saving of £5,000 compared with the standard rate — a meaningful reduction that helps offset other buying costs.
To qualify for first-time buyer relief, neither you nor anyone you're buying with can have owned a residential property anywhere in the world — including inherited property. Your solicitor will need to confirm your eligibility on the SDLT return.
Additional Property Stamp Duty on £400,000
Buying a second home, buy-to-let, or any additional residential property? You'll pay a 5% surcharge on top of the standard SDLT rates. The surcharge applies to the entire purchase price, not just the portion above the nil-rate band.
- Standard SDLT: £10,000
- 5% surcharge on £400,000: £20,000
- Total: £30,000 (effective rate: 7.5%)
That's a serious amount of tax. If you're buying a buy-to-let investment, make sure you've factored this into your rental yield calculations — it can take years to recoup through rental income alone.
Stamp Duty Comparison: England vs Scotland vs Wales
The UK doesn't have a single stamp duty system. Scotland and Wales each have their own versions with different rates and thresholds:
| Country | Tax Name | Standard | First-Time Buyer | Additional Property |
|---|---|---|---|---|
| England & NI | SDLT | £10,000 | £5,000 | £30,000 |
| Scotland | LBTT | £13,350 | £12,750 | £45,350 |
| Wales | LTT | £10,500 | N/A* | £29,950 |
*Wales doesn't offer specific first-time buyer LTT relief, though the £225,000 nil-rate band provides some benefit at lower prices.
Scotland's additional property surcharge (ADS) is particularly harsh at 8% — compared with 5% in England. If you're an investor considering Scottish property, factor in that higher cost carefully.
Who Typically Buys at £400,000?
A £400,000 purchase usually involves experienced home movers with solid equity or high-earning first-time buyers — often dual-income couples in their 30s. At this price you're looking at four-bedroom detached houses across much of England, three-beds in popular commuter towns, or spacious flats in major cities.
London buyers at this level typically look at zones 4–6, while outside London, £400,000 buys a genuinely impressive family home in Warwickshire, Cheshire, or North Yorkshire.
Household income of £80,000–£90,000 typically supports this purchase, assuming a 10% deposit and 4.5× mortgage multiple.
Total Cost of Buying a £400,000 Property
Stamp duty is just one cost. Here's the full picture for a standard buyer with a 10% deposit:
| Cost | Amount |
|---|---|
| Deposit (10%) | £40,000 |
| Stamp Duty (SDLT) | £10,000 |
| Solicitor / Conveyancing | £2,500 |
| Survey (Homebuyer's Report) | £900 |
| Moving Costs | £1,000 |
| Total Cash Needed | £54,400 |
First-time buyers can replace the stamp duty figure with £5,000, reducing the total cash needed accordingly.
Monthly Mortgage Payments on a £400,000 House
What will you actually pay each month? Here are the figures at different deposit levels, based on a typical 4.5% interest rate over 25 years:
| Deposit | Deposit £ | Mortgage | Monthly Payment | Total Interest |
|---|---|---|---|---|
| 5% | £20,000 | £380,000 | £2,112.16 | £253,648 |
| 10% | £40,000 | £360,000 | £2,001.00 | £240,300 |
| 15% | £60,000 | £340,000 | £1,889.83 | £226,949 |
| 20% | £80,000 | £320,000 | £1,778.66 | £213,598 |
| 25% | £100,000 | £300,000 | £1,667.50 | £200,250 |
Based on 4.5% interest rate, 25-year term. Get your exact payment →
Smart Tips for Buying at £400,000
- FTBs save £5,000. Your bill drops from £10,000 to £5,000 — same absolute saving as at £300,000, thanks to how the relief bands work.
- Watch the FTB cliff edge. If you're tempted to stretch past £500,000, know that at £500,001 you lose ALL relief and pay the full standard rate. The jump costs you £10,000+ in extra stamp duty.
- Stretch for 15% deposit if you can. On £400,000, the difference between 10% (£40,000) and 15% (£60,000) deposit unlocks noticeably better mortgage rates — potentially saving more over 25 years than the stamp duty itself.
- Get a Level 3 building survey. At this price, the property is a significant asset. A full building survey (£800–£1,200) catches issues a basic report would miss.