You'll need a dedicated player for this, as opposed to exploring the DAC option, as there aren't any DACs on the market that handle any hi-res decoding, but you have several choices for CD/SACD players.
As you'll maybe have noticed, Sony have quietly shipped SACD capability into many of their Blu-Ray players of late, not least the excellent BDP S370. See also Cambridge Audio with their 650BD universal player.
In terms of dedicated CD/SACD players, I'd probably point you towards Marantz and you've a few options here - a used or ex-dem SA7001 or the KI version, or the newer SA7003 or 8003. If you're quick off the mark, you might do a lot worse than talk to Nick at the Home Cinema Centre in Edinburgh who currently has an 8003 on ex-dem for about £599 or thereabouts. The player's normally £800-odd, so it's worth a phone call to see what he can do for you. Great guys to deal with too.
If it were my money, at that price, I'd be shortlisting the Marantz players, the Cambridge 650BD and the Pioneer PD-D6 II, which is around £400. Yes, there's others out there, you might snag a Yamaha 1000 or 2000 which has the capbility, but you'll need to shop around a bit to get those in your budget. Lovely players though and great build too, rather like the Marantz.