Just got this info from the net, from a local govt Building Control site;
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If it is 1m or more from the boundary and floor area is 30sqm or less, then it is exempt from building regs.
If it is within 1m, built from non combustible material and under 30sqm then it is also exempt.
If you can pass it off as a shed, and it is less than 15sqm then it is also exempt regardless of the distance from boundary.
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So to put it within 1m of a boundary and build it out of anything combustible, it looks like he will need to go through the building regs procedure. I suspect that Building Control will, as a minimum, look at the wall that faces onto the adjoining property, and insist that it is covered with a class 0 material as defined in B4 of ADB. If he makes the entire thing out of something non combustible and keeps it 30sqm of less then he won't have a problem. If you are wanting to treat the wood then I presume that it will still have to undergo Building Regs, as the Building Control body will want to make sure that it is treated properly. (You can probably imagine that people will claim to treat the building and then won't bother)