OK, what happens is this. The .303 Brit headspaces on the front of the rim. Ideally, the face of the bolt should be tight against the back of the case. If there is excess headspace, there's a gap.
Keep in mind that the back end of a casing is thick and hard (good for strength) and the front is thin and fairly soft (good for sealing). When the round is fired, the pressure builds up v quickly and the case starts to expand (pressure pushes in all directions with the same amount of force). The front end, being thin and soft, expands quickly against the wall of the chamber and essentially grabs hold of it (an oversimplification, but work with it). As the pressure keeps building, the case keeps trying to expand. The only direction it can expand however is rearward, to fill that gap between the bolt face and the back of the case. The front end can't move as it is 'glued' to the walls of the chamber, but the back can, so it slams backwards to where it is topped by the bolt. Like pulling taffy, it can get longer, but it gets thinner. A distinct thin ring forms around the case, right before the web.
In serious cases, this can separate the case right there, but that's unusual. More likely is that the case is seriously weakened, so that it will fail after being reloaded and fired again, or several tries on.
A couple of things to do to prevent this. One is to start with a case with a thicker-than-normal rim. This reduces the space between the case and the bolt face. One good brand for this is Privi Partisan, made I think in Serbia. It is available in Canada if you look for it.
A second way is to put a rubber o-ring or rubber band on the case right in front of the rim the first time you fire it. This holds the cartridge back against the bolt face while giving enough support so that the firing pin can fire the primer. What happens is that the case expands at the front, with little or no separation at the rear. Now, if you just neck-size the cases when reloading, the case has already expanded to be the right size for that particular rifle, even if it has excess headspace.
Two lessons for reloaders (asides from using PP brass). The first is to be careful when reloading used brass. The second is to stick to one rifle for one lot of brass.
Hope that helps.