If your CD player digital out, then you can just keep it and pair it with a dac. (If not you can get a suitable CD or BlueRay player for around £100 with digital out).
DAC + Power Amp Combos: Cambridge Audio DacMagic Plus and Rotel RB1552 Power Amp about £1050, Audiolab M-DAC and Audiolab 8200P Power Amp about £1250 or Musical Fidelity M1 SDAC and Musical Fidelity M1 PWR about £1299
Speakers: Tannoy Revolution DC6TSE, Tannoy Revolution DC6, Monitor Audio Silver RX6, Epos Epic 5 or Mordaunt-Short Mezzo 6
I'd love to try this combo:
Musical Fidelity M1 SDAC and Musical Fidelity M1 PWR about £1299
Monitor Audio RX6 £750
Very flexible and just £50 over the OP's budget at retail. So I suspect the combo could be acquired new within budget.
M-Audio USB Transit->Benchmark DAC1->Beyerdynamic DT880 (600 ohm) / AKG K701
Thanks for all your suggestions. I have decided the best way forward for me is to keep the CDP and just get amp and speakers. I still prefer the idea of having an amp rather than just active speakers I'm afriad.
I demoed both the Cyrus 8DAC and the Musical Fideleity M1 (DAC, Clic and Power) with B&W CM8s and I much prefered the MF out of the two. So I'm currently considering that as my number 1 choice, but will try and demo some more of the suggestions above.
http://www.whathifi.com/review/kef-ls50 or these big danes http://www.whathifi.com/review/dali-ikon-6
Up to the 2000$ you could buy a subwoofer,some stands or cable(mabye some music to enjoy?)
Presonus 22vsl soundcard, Tc electronic level pilot and Krk Rokit Powered 5 G3 with isoacoustics stands
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