The head is measured to/from the highest points in the installation, in the first example the pipe from the cylinder, in the second the same pipe on the loft floor, the head is increased by that distance.
For calculation purposes you never use the water level, as it drops as soon as you open and outlet, if you insist on boosting the figures then you should use the center line of the storage tank.
Time how long it takes to fill a small bucket stood in the bath from a shower hand set, then do the same experiment with the hand set at say 1m higher.
Do you want to tell qpsltd they are wrong or shall I