Medical requirements for Instruction

[boffo]

I have a PPL(H) with FI(R) rating. (obtained in 1998)
I have always understood that in order to be paid for instruction I need a Class 1 medical.
However I've just been reading the latest LASORS on the subject:

Section H3 under the topic "Remuneration"

...Instructors who hold valid private pilot licences and valid JAR-FCL Class 2 medical Certificate are entitled to instruct but cannot receive payment for this service*.

* This does not apply to the holder of a UK PPL(H) who qualified prior to 1 January 2000 under national arrangements

So my question is: Can I instruct for money on a Class 2 medical?

Boffo