Fact is, whether you are painting fifty-one percent or five-hundred and fifty-one percent of the thing in blue, green or whatever, painting it up in camouflage colours which replicate those that a military force uses, absolutely is an attempt to make it look like a realistic firearm. No amount of 'interpretation' as to what the two-toning mentioned in the VCR Act means is going alter the fact that you would be 'manufacturing a RIF', which is specifically mentioned in the VCR Act. So (without a legitimate reason for having done so) this means you would be stepping outside the legal boundaries of the VCR Act and would be liable to a prosecution if you did not have a reason for having done so. But - and is an important point - keep in mind that the VCR Act is intended to 'do what it says on the tin', i.e. it is the Violent Crime Reduction Act. That is its purpose. It is not the Stop You Playing Airsoft Act, nor is it the Stop You Having a Realistic Looking Firearm Act. So long as you are within the boundaries of when the VCR Act says you can have a RIF, then you absolutely can have a RIF.
Someone at home possessing a RIF, or painting up a gun to look more realistic is nothing whatsoever to do with UKARA at all, nor are they crossing the boundaries of the VCR Act, since they are at home and not out somewhere committing a Violent Crime. And UKARA is simply a means for retailers to determine whether you have a legitimate reason to buy a RIF, so that they can sell you one with a clear conscience and be safe from prosecution. If you have a legitimate reason for owning a RIF, i.e. you regularly go skirmishing, then you don't need a UKARA at all, and anyone who says that you do, does not understand either what UKARA is, or what the VCR Act pertains to.
UKARA is not the law, what is mentioned in the VCR Act is the law.
Behave responsibly and don't be a dickhead with your guns by waving them about in public and scaring people, and you can have as many RIFs as you want, with or without a UKARA.