Liberal Democrat Daisy Benson said the "snap election"... "unfortunately comes at precisely the wrong time for me".
Ms Benson said it would be unfair to Yeovil constituents "not to be able to devote 100% of my time to campaigning."
Former Yeovil MP, Lord Ashdown, thanked Ms Benson who had helped "energise the constituency" during her time as PPC.
"I know you will join me in thanking Daisy for her tremendous efforts, and wish her every success for the future," he said.
"I am very glad to tell you, she has offered to continue to campaign for the upcoming County Council Elections in the time available to her, given her house move."
Ms Benson said she had been preparing for the past year to be a PPC but the process to select a new candidate was now under way.
The Lib Dems lost 49 seats in 2015 and held on to just eight.
Their target seats this time include Twickenham, Dunbartonshire East and Yeovil.
Yeovil was a constituency the Lib Dems had held for more than 30 years before it was won by the Conservatives in 2015.
Paddy Ashdown held the seat from 1983 until 2001 - and the broader south-west region was formerly a stronghold for the party.
A prospective parliamentary candidate (PPC) has announced she will not be standing for election in Somerset as she is in the middle of buying a house.