Selling an inherited house in Scotland: Home Report, timing and tax

Our guide on whether an executor can sell a house before Confirmation covers the legal timing in detail. This guide looks at the whole process, the choices involved and the tax.

Sell or transfer the house

An executor does not have to sell the house. If the will leaves it to someone, or the beneficiaries agree, the executor can transfer it to one or more of them instead. In Scotland this is often done simply, with a docket on the Confirmation or a disposition.

If the person owned the house jointly, check the title first. A survivorship destination may mean their share has already passed to the other owner, outside the estate.

The selling process, step by step

1. Secure and insure the house. Tell the insurer about the death, as cover is often restricted once a house has been empty for around 30 days.
2. Apply for Confirmation. The house is included in the inventory at its value at the date of death. See our guide to which sheriff court deals with Confirmation.
3. Clear the house. Deal with the contents carefully, as they belong to the estate. See our guide to clearing a house after a death.
4. Get the Home Report. Instruct a chartered surveyor once Confirmation is on its way, so the report is fresh when the house is marketed.
5. Market the house. The house can go on the market before Confirmation arrives, but missives cannot be concluded until the executor has it.
6. Conclude missives and settle. Once Confirmation is granted and a buyer is found, the solicitor concludes missives, the sale settles on the date of entry and any mortgage is repaid.
7. Deal with tax and distribute. The executor reports any capital gains tax, pays the estate's debts and costs, and shares out the proceeds.

The Home Report

A Home Report is needed to market most homes in Scotland, and executry sales are no exception. It has three parts: a single survey with a valuation, an energy report, and a property questionnaire. The documents must be no more than 12 weeks old when the house is first put on the market, and a prospective buyer who asks for a copy must be given one within nine days.

The property questionnaire asks about things like council tax, alterations and past repairs. An executor who never lived in the house can only answer from what they know or can find in the papers, and it is normal to say so. The Home Report valuation also gives a useful check on the date of death value used for Confirmation.

Timing and costs while you wait

• Council tax. An empty house in the estate is usually exempt until Confirmation and for up to six months after. See our guide to council tax after a death.
• Mortgage. Interest usually continues to run. Tell the lender about the death early. Lenders will usually wait for the sale if they are kept informed.
• Utilities and upkeep. The estate pays for heating, electricity, and basic maintenance until the house is sold.
• Timescale. From the death to the sale settling often takes three to six months or more. Our guide to how long Confirmation takes explains the first part.

Capital gains tax when the house is sold

Inheriting a house does not trigger capital gains tax. The house is treated as acquired by the estate at its value at the date of death, the figure in the Confirmation inventory. Tax only arises on any increase in value after that.

• Selling costs are deducted. Estate agent fees, legal fees and the cost of the Home Report are deducted from the gain.
• The estate has an allowance. Executors have an annual exempt amount of £3,000 for the tax year of the death and the following two tax years. Our guide on tax returns for an estate explains how gains and income are reported.
• The rate. Gains made by executors are taxed at 24%.
• The 60 day rule. If there is tax to pay on the sale of UK residential property, it must be reported and paid within 60 days of completion.
• Main residence relief. Relief may be available if, before and after the death, the house was the only or main home of beneficiaries who are entitled to at least 75% of the proceeds.
• Selling at a loss. If the house sells for less than its date of death value, the estate may be able to claim a loss. If inheritance tax was paid, it may also be possible to substitute the lower sale price for the date of death value if the house is sold within four years of the death.

If the house is transferred to a beneficiary instead, the beneficiary is treated as acquiring it at the date of death value, and any later gain is theirs. Our guide to inheritance tax in Scotland explains how the house counts towards the estate's inheritance tax.

The Additional Dwelling Supplement

No Land and Buildings Transaction Tax or Additional Dwelling Supplement (ADS) is payable on inheriting a house. But a beneficiary who keeps an inherited house, or a share of one, may pay ADS, currently 8% of the price, if they later buy another home without selling one. Since 1 April 2024, a share worth less than £40,000 is ignored, and there are other special rules for inherited homes, so take advice before buying.

Average house prices in our areas

The UK House Price Index for July 2026, published by Registers of Scotland with the Office for National Statistics, gives these provisional average prices:

These are averages across all property types, and a single house can be worth much more or less. They do show why timing matters: in most of our areas, prices rose over the year, so a house sold many months after the death may sell for more than its date of death value, which is when capital gains tax can come into play.

How we can help

We deal with the whole estate, including the house: valuing it for Confirmation, working with estate agents and surveyors, handling the conveyancing, reporting any capital gains tax and paying out the proceeds. If a beneficiary wants to keep the house, we can transfer it to them instead. Your first appointment is free.

This guide is general information about Scots law, correct at the date shown. It is not legal advice for your circumstances.