Yes that is exactly what is happening, boiler switches off, pump stops, then all is good if I switch off the HW.At the moment, until rectified, you have a mid position valve, so any fault finding will/should apply with this type of installation. You should be able to follow this link fairly logically to identify your present problem.
When you say the CH pump doesn't run then if referring to the circulation pump, the boiler isn't firing either?
Y Plan central heating system (flameport.com)