At the risk of sounding pedantic would you kindly explain why Section 2 of Schedule 8 fails to make reference to the requirement imposed upon the United Kingdom by JAR-FCL1.015(a)(1), which as you rightly pointed out requires Member States to recognised without formality the privileges of other Member State issued JAR-FCL PPL?
Well its not really that hard.
Schedule 8 is not an article of the ANO. It is just a schedule (or appendix if you prefer) which provides the legal definition for licences issued by the UK CAA, both JAR and non-JAR. The Article that makes this explicit is 22(4). So nobody should really think that this applies in some way to licences issued outside the UK.
The rules regarding the recognition of JAA licences issued outside the UK are contained in article 21 4(b) of the ANO in plain black and white. This includes the full recognition of JAR licences in compliance with the JAR-FCL 1.015.
I hope that makes it a bit easier for you. dublinpilot really does have no issue if he wants to bring in IAA-JAA PPL to the UK and fly on top of a covered layer, because his licence was issued by the IAA and they don't write that restriction into their licences
AFAIK.