The law in this area is clear: it does not permit the copying for personal use of a recording the copier has purchased, without permission of the copyright holder. For example, tracks purchased online are often accompanied by licences permitting consumers to make a limited number of copies for their own use, but many CDs have “all rights reserved”.
The Government carefully considered this issue in their Copyright Strategy, “© the way ahead”, and the second stage consultation on copyright exceptions arising from the Gowers Review of Intellectual Property. We concluded that a UK-only approach will be unable to deliver the correct balance between the access that consumers desire and the appropriate remuneration that rights holders need. EU-wide consideration is required, which we would support.