Yes its compatible.

What are you going to be using this computer for? If it is gaming primarily and there are no other tasks which are more CPU intensive then you would be better off saving the money and getting an i5-2500K.

£60 for 8GB of RAM is poor value as system performance on the Intel 1155 platform doesn't improve significantly, if at all, from reducing latency from 9 to 8.
http://www.anandtech.com/show/4503/sandy-bridge-memory-scaling-choosing-the-best-ddr3/

So I don't see why you would pay more than £40:
Corsair Vengeance LP 8GB (2x4GB) DDR3 1600MHz CAS9 1.5V CML8GX3M2A1600C9B £38
http://www.ebuyer.com/274036-corsair-8gb-2x4gb-ddr3-1600mhz-vengeance-blue-low-profile-cl9-1-5v-cml8gx3m2a1600c9b

If you want a cheaper, just as fast (if not faster), quieter, cooler drive then get this:
Samsung Spinpoint F3 1TB £115
http://www.ebuyer.com/173804-samsung-hd103sj-spinpoint-f3-1tb-hard-drive-sataii-7200rpm-32mb-cache-hd103sj
 

DelroyMonjo

Distinguished
British £ is currently $1.77 USD. That's an astounding amount of money even for your original list. I realize you have VAT and I suppose shipping is involved in those prices, but.........just sayin'.