Just checked out the CAA website. The provision for sitting UK CPL exams to get a JAA CPL license is still there. Check it out for yourself on
www.srg.caa.co.uk/pld/pld_home.asp and click on "what's new".
Also PPSC still do the CPL course but you will have to take the exams at Gatwick.
As for what you can or can't do with the license, as far as I know its a full blown CPL and if people won't recruit you for a job that only requires a CPL because you haven't done your ATPLs then just keep quiet about it. If you're qualified for the job then it should stop there surely (he says niavely).