Without having the relevant rules to hand, I seem to recall the "in sight of the surace" rule only applied when one is below 3000'
Ojuka - it is possible that you're confusing this with the Instrument Flight Rules, whereby below 3000ft the requirement to be 1000ft above the highest obstacle within 5 miles is negated if you are clear of cloud and in sight of the surface.
I see one has to read the ANO to discover the extra restriction of being in sight of the surface if you have a PPL with no IMC rating.
Not necessarily - you just need to know the privileges of your own licence - something which every pilot should know.