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Hi

I've just discovered a cellar. It's about 2.5m x 3.0m with a vaulted
ceiling and a stone staircase leading up into the house. The ceiling
height at present is over 2.0m, but I suspect if I dig down I will
find a flagstone floor. It's still limewashed, and there are a few
iron hooks on the ceiling.

I'd like to restore it, but I'm concerned that I'm breaking so many
regulations renovating my house

Don't break regulations.

that reinstating a cellar might just
get me into an altogether new realm of trouble if I get caught.

The cellar is there, you are not digging out a new one. Use it to put the
cylinder and boiler in there.