richs3,
The document you refer to can be downloaded from
this page.
WorkingHard,
"When the European regulations are fully implemented, United Kingdom licences will not be valid for the piloting of EASA aircraft. "
Can anyone shed any light on this sentence please? Does it mean that a CAA PPL is only valid for piloting and aircraft that is on the BRITISH register and then only within the UK?
No, that is not the interpretation. A PA28 or Cessna on the G register is still an EASA aircraft & will require an EASA licence, even in UK airspace.
You will only be able to use a CAA licence in Annexe II aircraft (see document from page linked to above.) I have no idea whether anyone will be allowed to fly an Annex II aircraft outside of the UK with a non-EASA licence. Microlight & NPPL(M) will probably be OK.