Second home
Selling a second home in Scotland
The property side is ordinary. The tax side is where people get caught out.
The short answer
Selling a second home in Scotland works like any other sale, but the tax treatment differs. Capital Gains Tax may be due on any gain, because Private Residence Relief generally applies only to your main home, and UK residential property gains have their own reporting and payment deadline. If you paid the Additional Dwelling Supplement when buying, a repayment may be available where you sell a previous main residence within the statutory period. Take advice from a tax adviser on your own position.
What this means
Which property counts as your main residence is a question of fact, and it affects both relief and reporting.
The Additional Dwelling Supplement is a Scottish LBTT charge collected by Revenue Scotland. Repayment rules and time limits are specific and are not the same as English stamp duty rules.
Councils in Scotland can charge a premium on second homes, so holding costs may be higher than owners expect.
Your possible options
These are possibilities to consider, not recommendations. Which of them fits depends on your own circumstances.
Sell on the open market
The ordinary route. Timing matters if an ADS repayment window or a tax year boundary is in play.
Specialist advice: Confirm deadlines with a tax adviser before agreeing a date of entry.
Sell with a tenant in place
Where the second home has been let, an investor sale avoids a void and keeps income running.
Transfer within the family
Possible, but transfers have their own tax consequences and are not a way of avoiding a gain.
Specialist advice: Tax adviser and solicitor before any transfer.
Keep and let it
Retaining the property brings landlord registration, tenancy law and income tax into scope.
Specialist advice: Letting in Scotland is regulated; take advice on obligations.
What should I do first?
- Establish which property has been your main residence, and for which periods.
- Gather purchase price, purchase costs and evidence of capital improvements.
- Check whether an Additional Dwelling Supplement repayment applies and by when.
- Ask a tax adviser about the gain and the reporting deadline before you settle.
- Factor the tax into the net figure before deciding whether to sell at all.
You may need specialist advice
Lothian Property publishes property information. It is not a law firm, lender, financial adviser or estate agent, and the professionals below are independent of us.
- Tax adviser or accountant
- Capital gains, inheritance tax and Additional Dwelling Supplement depend on your own circumstances.
- Conveyancing solicitor
- In Scotland a solicitor normally handles missives, title and settlement, and often the marketing too.
- Letting professional
- Tenancy law in Scotland is specific. A registered letting agent can explain obligations to tenants.
- Estate agent or selling solicitor
- Marketing and selling the property is carried out by the agent or solicitor you appoint, not by Lothian Property.
What to do next
Understand your property position first
Tell us about the property and what has changed. We will set out what the information says, with no obligation to sell and no pressure to decide anything today.
Common questions
- Do I pay Capital Gains Tax on a second home in Scotland?
- Capital Gains Tax is a UK tax and may apply to a gain on a property that is not your main residence. Rates, allowances and deadlines change, so check current HMRC guidance and take advice.
- Can I get the Additional Dwelling Supplement back?
- A repayment may be available where you sell a previous main residence within the period set out in the legislation. Revenue Scotland publishes the rules and time limits.
- Is council tax higher on a second home?
- Scottish councils have discretion to charge a premium on second homes. Your local authority confirms what applies to your property.
Sources
- Revenue Scotland — Land and Buildings Transaction Tax — government
- HMRC — Capital Gains Tax on property — government
- mygov.scot — housing and local services — government
- Law Society of Scotland — find a solicitor — professional body
Related situations and guides
About Lothian Property
An independent starting point, not an estate agency
Lothian Property is an independent property information and introduction service. We are not an estate agency. We help homeowners understand their property, their options and their local market, and — where appropriate and only with your permission — introduce them to independent estate agents and other property professionals who can assist.
How Lothian Property worksPrepared by Lothian Property. Information last reviewed 2026-09-04; next review due 2027-03-04. General property information for Scotland, not legal, tax or financial advice. Editorial policy.