Hello and welcome to the site.
Thank you for requesting I help you with your question.
I have a different answer.
It was your intention to refurbish the property and let it for income but circumstances changed and you decided to sell the property and made a gain of £25k.
As the property was never put on the market for rental purposes HMRC would view as a property developer and not property investor and assess the profit as income and not capital gain.
If that were to be the case, then you and your wife would have £12.k each added to your respective income and taxed at income tax rate.
It does not matter whether you refurbish and sell one property or several.
You would be able to declare this gain as capital gain only you you can support the claim that the property was made available for let and in the absence of any tenants taking the property it was decided to sell it.
I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.