The old codes were:-
Code 1: Indicates immediate danger
The installation is a risk to the user; therefore, the inspector should take appropriate action without delay to remove the danger.
Code 2: Requires improvement
This code should be used to indicate that the observed fault requires action to remove potential danger.
Code 3: Requires further investigation
Indicates that the inspection has revealed an apparent deficiency which could not be fully identified and should be investigated further.
Code 4: Does not comply with the current issue of BS 7671
Used to show that certain items of the installation don’t comply with the requirement of the current issue of BS 7671 but are not deemed a risk to the user. The inspector should show consideration to suggest benefits of improving those parts of the installation.
I remember reading these have now changed was a PIR now it's an Electrical Installation Condition Report and dropped from four codes to three.
Code C1, C2, and C3 see
http://www.select.org.uk/downloads/BestPracticeGuide4-Issue3.pdf so we have danger, potential danger, and improvements recommended.
If the lamps comply with IPXXD or IP4X then I would give C3 but if not then one has to consider a C1. Placing out of reach is an option with some items see 417. 2.5 meters is quite high but I would agree it is not easy to decide at times what code to give.
I am not sure if I like the new codes with the old system for us it was more cut and dried but the idea was for it to be better for the customer. Where it does not comply with the current issue of BS 7671 was to me useful as it informed the customer that before any work is carried out it may need upgrading. However recommending improvements does not really cover that.
The point is of course if it complies with IPXXD or IP4X or 2.5 meters then C3 if not it has immediate danger so C1 can't see how it could be C2?