200 pounds does not get you a nice machine. If you really want to enjoy PC gaming look at spending 600 GBP or so on a full system. You can get away with 450GBP and still have a decent experience, but 600 will take you much further.
If you go and spend 100 GBP on a decent video card right now (we don't even know if you have enough power supply headroom, mind you, because you haven't given us the make and model of your powersupply), you'll get OK performance, but you won't get the same performance as if you put that same video card (750Ti was recommended. I agree) in a new system with a modern 4 core CPU. Your CPU is from 2008. That's 6 years old. Very old technlology and very slow in comparison to today's technology. My opinion is that it is not worth spending the money to upgrade your current system. In my opinion, anything older than 1st gen i7 chips (also from 2008, but worlds more powerful than your CPU) is not worth upgrading, or running at all (for gaming) at this point. I had a CPU similar to yours (E6550) and I retired it in 2010 because it was already too pokey for the games I was playing.
If you want a nice system that won't break the bank:
AMD FX 6300
Gigabyte GA 970A UD3P
AMD R9 280X (coming down as low as $240 or less these days)
2x4GB DDR3 1866
128-256GB SSD (Crucial M550/Samsung 840 EVO)
1 TB Western Digital Caviar Blue HDD
Corsair CX600 power supply
Corsair 200R case
Cooler master Hyper 212 CPU cooler
That should run you about $850 US which would be about 600-650 GBP. Nice system.
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