Thank you adsibob and markocosic. Smoke is the issue as the compartment floor is to make a safe escape from the upper compartment. As I understand it, protection from smoke is critical as the first concern, to enable people to escape. Later when fire penetrates people should be out.
Markocosic shows presumably a European solution which shows filling the compartment floor void where the flue passes through. This makes common sense to me. (It also gives the flue termination dimensions that UK Building Regs use). Our HETAS installer claims filling the floor with insulation is against their code.
Armed with the Sauresta info I'll contact Building Control.
Many thanks markocosic