Was reading the BS again. Here's more:
From current BS 6798:2009
Specification for installation and maintenance of gas-fired boilers of rated input not exceeding 70 kW net
4.4 Location
COMMENTARY AND RECOMMENDATIONS ON 4.4
Room-sealed boilers may be installed in any room or space. It is not recommended that any type of boiler be installed in an understairs cupboard, bathroom or shower room, bedroom or bed-sitting room, or within a toilet or cloakroom, but such installations are acceptable subject to the requirements of 5.3.4 to 5.3.7.
5.3.4 Understairs cupboard installations
...
5.3.7 Toilet and cloakroom installations
The air vents from any boiler installed within a toilet or cloakroom shall be direct to outside air.
COMMENTARY AND RECOMMENDATIONS ON 5.3.7
Installation within a toilet or cloakroom should only be considered if there is no alternative location.