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This question routinely crops up during the Design process and the answer to the quandary really depends on the trade off between cost and the desired aesthetic. For some clients, a downstand (whereby the steel beam holding the flank wall is offered up to the existing floor joists and then enclosed in plasterboard) really isn't an issue; whereas for others, it is imperative that the ceiling runs flush into the Side Return, requiring the steel beam to be recessed within the floor void above.
The photo depicts a Side Return currenty underway in Fulham SW6 where the flank and rear walls are being supported by temporary steel needles in preperation for the steel beams to be recessed within the walls - thus providing a flush ceiling detail to both the side and rear projection of the extension.
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