My husband (member of the Armed Forces) and I bought a house in 2009 before we were married. We originally intended to live in the house but my OH's postings have not allowed us to do so. We moved into SFA when we got married. Prior to this OH was in military accomodation.
Up until the time when we had our first child, it was intent to live in the property, the only factor preventing us from doing so was the location of OH's posting. We have since had another child and so the house is now too small for us as a family.
As such, we have never lived in the property but instead have rented it out since it was purchased.
We have now decided to sell and buy a house that we can actually live in (similar area to currently owned house). Based on the expected sale price, we will have made a capital gain in the region of £125k and believe that we can claim relief as we were never able to live in the property owing to OH needing to be in a different location. Is this correct and what exemption does this fall under? I also believe that we will need to illustrate that we intended to live in the house. How can this be achieved?