FCL have been spoken to today and they said that they are not able to issue UK PPL’s anymore.
See Article 152 of ANO 2016
152.—(1) Subject to article 172, the CAA or a person approved by the CAA for that purpose must grant licences of any of the classes specified in Part 1 of Schedule 8, authorising the holder to act as a member of the flight crew of a non-EASA aircraft registered in the United Kingdom, if it is satisfied that the applicant is—
(a) a fit person to hold the licence; and
(b) qualified by having the knowledge, experience, competence, skill and physical and mental fitness to act in the capacity to which the licence relates.
Part 1 of Schedule 8 includes a Private Pilot Licence (Aeroplane) and the privileges of that licence include
to fly such an aeroplane for the purpose of commercial operation—
(i) which consists of instruction or flying examinations, provided that—
(aa) in the case of instruction, the licence includes an appropriate instructor certificate; and
(bb) in the case of flying examinations, the holder is authorised to conduct such examinations by the CAA
So the CAA
can (nay,
must) issue a UK PPL(A) to fit and qualified person and it
can include an FI(A) certificate. There is nothing in Article 163 of the Order to prevent the holder of a PPL(A) with a medical declaration from exercising the privileges of an instructor certificate (or an IMC rating, IR or MEP rating come to that.)