Under FCL.900 a person my only give instruction if they hold an appropriate certificate however; where does letting someone have a go become instruction? The CAA statement appears to condone letting someone have a go above 500 feet!
The UK ANO Art 170 only refers to Instruction given for the purpose of becoming qualified for the issue or re-validation of a licence, rating or certificate. It does not make it illegal to give instruction that does not lead to a qualification.