Strateandlevel - I agree with your comments and that on the face of it the impact of the AICs is triggered by the usual need to pay the instructor however your interpretation is not that of the CAA. I spoke to their legal department and put to them a scenario in which the aircraft is Group owned on a private cat and a member of the group is a QFI who chose to render his services free of charge. Even in these circumstances the CAA felt because a payment was made to the Group to operate the aircraft the training could not be undertaken - that might not be your or my interpretation but that was their comment at the time. I guess you are ok if the group allows you to use the aircraft free of charge and the instructor does not charge for his time - pigs might fly as well.