As said, have a look for air vents in the wall that is within the 'sh!tty shed'. Means going into the smoking shed

Covering these should make a big difference to the smell, but wont be particularly detrimental to the ventilation of the cavity, as its already had a shed built round it...
Were presuming this is a cavity brick wall, plastered internally? Is it rendered externally, or painted? If not rendered or painted within the shed, a layer of paint to the wall in the shed may help reduce its permeability.
Also, while in the shed, see how the roof is fixed to the wall, is there a timber batten screwed to the wall perhaps? There may be unused or oversized holes for fixings that could be a problem.
Whats the arrangement with your kitchen windows? Could some of the smoke be coming in there?
Pics may help, especially if Tweed can cast an expert eye over them.
You could give your local planning authority a ring, and discuss the problem with them, but I very much doubt there is any non-compliance to persue.