Small room amp and speakers recommendation

KEF LS50W. Not sure if a sub is needed in such a small space.

Audience 1+1 V3 need space behind them but they weigh about 5lbs and sound huge. 

I owned the 1+1 and the KEF LS50, not LS50W. However, I needed acoustic panels in my room to make the LS50's sing. I doubt you would need acoustic treatment with the LS50W, since it has built-in DSP.

With the LS50 and 1+1 I used the Peachtree Nova 150. That would keep you under $5K for a complete system.

I also used the Benchmark DAC3 HGC and the Benchmark AHB2 with each of those speakers. I liked that combo much more than the Nova 150 however, a lot of people here may say that combo was not MUSICAL. I loved it. That combo was more than $5K.

I haven't been impressed as I thought I would with the KEFs fof certain music. I love them in a home theater setting but lack a little on the high end on acoustic music. On the other side of that it feels like B&W can be a bit harsh on the highs give a bit of fatigue after a lot of listening...but both of these could always be from the amp they were hooked up too.

I would consider a Parasound integrated it has everything you need in one piece of equipment and plenty of power. You may want to consider the new smaller Magnepans with a sub this should give you terrific sound within your budget. I'm sure there are many other speakers like the Kef Ls50 with a sub that would also be great.