stampdutycalc.uk

Stamp Duty on a £40,000 House

You pay no stamp duty on a £40,000 property in England or Northern Ireland if it will be your only residential property — the price sits inside the £125,000 nil-rate band.

Only property (standard rates)

£0

Effective rate 0%

First-time buyer

£0

Effective rate 0%

Second home or buy-to-let (+5%)

£2,000

Effective rate 5%

Non-UK resident (+2%)

£800

Effective rate 2%

Band breakdown at £40,000

SDLT is charged in slices. Each rate applies only to the portion of the price that falls inside that band, which is why the effective rate is lower than the top rate you reach.

Standard rates — single residential property
BandAmount in bandRateTax
Up to £125,000£40,0000%£0
Total£0

First-time buyer relief at £40,000

First-time buyer relief applies at this price, though the standard nil-rate band already covers it, so there is no additional saving to claim.

First-time buyer rates
BandAmount in bandRateTax
Up to £300,000 (first-time buyer)£40,0000%£0
Total£0

Second home or buy-to-let at £40,000

If this purchase means you will own more than one residential property, 5 percentage points are added to every band — including the nil-rate band, so the surcharge is charged from the first pound. The bill rises from £0 to £2,000, an increase of £2,000.

Additional property rates
BandAmount in bandRateTax
Up to £125,000 (+5% surcharge)£40,0005%£2,000
Total£2,000

£40,000 in England, Scotland and Wales

The three tax regimes set their own thresholds, so an identical purchase price produces three different bills. Figures below are for a single residential property with no reliefs or surcharges.

Where you are buyingTaxBill at £40,000Effective rate
England & Northern IrelandSDLT£00%
ScotlandLBTT£00%
WalesLTT£00%

What £40,000 means for your stamp duty bill

At £40,000 you fall entirely within the nil-rate band, so there is no stamp duty to pay at all. The nil-rate band covers the first £125,000 of any residential purchase, and because your price sits below that threshold none of the higher rates are triggered.

You may still need to file an SDLT return even though the tax is nil. HMRC requires a return for most notifiable transactions, and the threshold for notification is lower than the threshold for paying. Purchases under £40,000 are generally not notifiable at all. Your conveyancer will confirm which applies.

For context, £40,000 is about 86% below the UK average house price of roughly £290,000. Your marginal rate at this price is 0%, meaning that is the rate charged on the next pound you add to the purchase price.

How the bill changes around £40,000

Useful when you are still negotiating. Your marginal rate at £40,000 is 0%, so every extra £10,000 on the agreed price adds £0 in tax.

Purchase priceStandard SDLTDifference
£15,000£0—
£30,000£0—
£40,000 (your price)£0—
£50,000£0—
£65,000£0—

Frequently asked questions

How much stamp duty do I pay on a £40,000 house?

There is no stamp duty to pay on a £40,000 property in England or Northern Ireland if it will be your only residential property. The price falls entirely within the £125,000 nil-rate band.

How much stamp duty does a first-time buyer pay on £40,000?

A first-time buyer pays no stamp duty on a £40,000 property. First-time buyer relief gives a nil-rate band of £300,000, which covers this price in full.

How much stamp duty on a £40,000 second home or buy-to-let?

A £40,000 additional property attracts £2,000 in stamp duty. That is the standard £0 plus the 5 percentage point additional property surcharge, which applies to every band including the nil-rate band. If you are replacing your main residence and sell your previous home within 36 months, you can claim the surcharge back.

What does a non-UK resident pay on a £40,000 property?

A non-UK resident buying a £40,000 property as their only residential property pays £800, which includes the 2% non-resident surcharge on top of standard rates. You count as non-resident if you were in the UK for fewer than 183 days in the 12 months before completion.

Is stamp duty on £40,000 different in Scotland and Wales?

Yes. On a £40,000 purchase you would pay £0 in SDLT in England or Northern Ireland, £0 in LBTT in Scotland, and £0 in LTT in Wales. Each nation sets its own bands and thresholds, so the same price produces three different bills.

Related guides

Plain-English explainers with worked examples. All figures are checked against current HMRC and devolved authority guidance.

How stamp duty is calculatedBand-by-band breakdown with worked examples for England and Northern Ireland.First-time buyer £500k cliff edgeWhy relief disappears completely above £500,000.36-month refund ruleClaim back the surcharge when you sell your previous main home.

Browse all property tax guides →

Need a different price? Use the full stamp duty calculator to enter any figure, or browse stamp duty by purchase price.

Stamp duty on £50,000 →

Rates verified June 2026 against HMRC guidance on gov.uk. Figures are for guidance only — confirm with your solicitor before completion.