Hi Luke,
I will try to reply as best I can, I hope other members will readily correct any errors, but this is the basis to which we as a group should be working.
I can very much understand your confusion, to say the least. And it is essential that you get this right. The general consensus is experimental ( note : experimental ) pyrotechnics is lawful under current legislation but you are extremely limited in what you can do. I re-emphasize, experimental - this is very different from manufacture which is not covered by the legislation.
In the spirit of experimental pyrotechnics you would be permitted to do the following :
1) Acquire, including by way of manufacture ( see [2] ) or by procurement, black powder. In order to acquire you MUST have an acquisition certificate. You may also store your black powder but you would need an "acquire and keep" certificate for this as opposed to an "acquire only" certificate. This would allow you to store more than the 100g permitted under an acquire only certificate. That ONLY applies to black powder.
2) The amount you can manufacture at any one time for black powder would be 100g under the terms of your acquire only or acquire and keep certificate above ( depending on what you applied for). It is important that you realise many different methods exist for the production of black powder, some are safer than others, people have been killed doing just that, pyrotechnics by nature is not 100% safe.
3) You may apply, but may not be granted, for the UN - MAN2 designation on a separate "acquire only certificate" if you have an "acquire and keep" or with your "acquire only certificate". This would allow you to produce any pyrotechnic composition, subject to the regulations, for the purposes of pyrotechnic experimentation / demonstration. This would, therefore, allow you to produce other compositions that are not based on black powder - for example, Strontium nitrate / parlon / magnalium / red gum for the production of red flame. The maximum allowable acquisition at any ONE time would be 100g. As this only applies to "acquire only" you would not be allowed to keep this composition and it would need to be used immediately, within practicable reason and within the spirit of the legislation
4) You may assemble a pyrotechnic device up to 100g maximum net explosive content, e.g. a 2 inch shell or a rocket with a small heading given the above, but again, this would class as an unclassified device and so could not be stored - it must be used immediately as above.
In order to obtain any of the following pyrotechnic chemicals ( all commonly used substances ) you would need an Explosives and Poisons Precursor License :
Potassium Perchlorate
Potassium Chlorate
Barium Chlorate
Barium Nitrate
Sodium Oxalate ( Oxalic acid )
It is perfectly legal to buy potassium Nitrate. Be aware, however, that vendors have a duty to inform of suspicious activity.
No matter what legislation you follow, you would be responsible for your actions and any damage to people or property caused by such actions would invariably lead to prosecution. This is only my summary on things as they stand, it is not my advice that you should necessarily follow this. I'm hesitating writing this next bit but I feel I must - I have a personal take, which is likely to be inflammatory to many, that the regulations are not actually fit for purpose. The regulations leave you very open and I feel it won't be until something happens that they will be truly tested, nonetheless it's all many people have, sadly. You have to consider not only yourself but others and this area is not clear. I would argue that there should be a clearer code of practice and clear stipulation on the way in which these things are done but the community is understandably concerned that such discussion may eliminate the possibility of experimental pyrotechnics completely. You have to decide how you feel operating within a framework that is not entirely clear - or at least as clear as it can be. Personally, I feel the only truly robust way in which this can safely be done is with a manufacturing license and to properly license a facility. However, this is something that is even less easily accessible, highly costly and something that will take me a long time and great expense, but then it's the passion for the hobby which will drive me on this.
I apologise to all if I have in any way spoken out of turn, It's not intentional.
Sam.