I am currently baking cakes in my home kitchen, mostly for friends, family etc and wanting to start an actual business to sell my cakes from home.

i have only a small home kitchen and have been offered the use of a pub/ hotel kitchen to do my baking/decorating in although I would still be selling them from home.

My question regarding this is how would I stand with regard to Environmental Health Office? 

Everything, and I mean *EVERYTHING* you use/need must beleft in the commercial kitchen.  This was true in the 2 state I worked in so I am guessing it will be true in all of them.   But to know for sure you are going to have to check w/your local health dept as it varies. 

Health Dept requirements and guidelines vary. Please reach out to yours and inquire. It's an interesting topic of discussion. I just dont want you to be misled by someone else's experience, which may vary greatly from what will be expected of you in your area.

I do wish you the very best!!! Hoping all your dreams come true! (((Hugs)))