Zulu, again not an expert but I can concur with Stuff. We were in exactly the same situation in the last couple of years of our service - you simply make the declaration that the house you owned was your designated primary residence. In fact from what I recall you don't even need to inform the tax office - the solicitor did that all for us I think as part of the usual conveyancing transaction. Having said that, we were selling under the Scottish systems so things may differ down South. I would check with your solicitor.