In this paper, we shall extend the method of obtaining symmetries of ordinary differential equations to second-order non-homogeneous functional differential equations with variable coefficients. The existing research for delay differential equations defines a Lie-Bäcklund operator and uses the invariant manifold theorem to obtain the infinitesimal generators of the Lie group. However, we shall use a different approach that requires Taylor’s theorem for a function of several variables to obtain a Lie invariance condition and the determining equations for second-order functional differential equations. Certain standard results from the theory of ordinary differential equations have been employed to simplify the equation under study. The symmetry analysis of this equation was found to be non-trivial for arbitrary variable coefficients. In such cases, by selecting certain specific functions, arising in most practical models, we find the symmetries that are seen to be in terms of Bessel’s functions, Mathieu functions, etc. We then make a complete group classification of the second-order linear neutral differential equation, for which there is no existing literature.