[softfeet]

"Basically if you think or feel all is NOT correct, DON'T buy it, DON'T build it and finally DON'T drive it."
Very wise words.

"IVA?"
Also very wise words.

As far as I can see, there are only three possible things to do with an incorrectly registered kit car: re-register it correctly with an IVA test, restrict it to off-road / track use only, or break it for spares. Using it on the road should not be an option. The thought of the IVA test may be intimidating, but surely if you have the motivation and talent to build a car, it should be possible? Admittedly, I built my kit car before SVA/IVA was introduced and all it needed was an MoT to register, so I don't have any experience of it yet.

I do not think it is the right attitude that if someone is driving an incorrectly registered kit car on the road and gets pulled and is prosecuted who cares as long as the car is not a danger to its driver or others and it is no business of anyone else.

"The police has had an amnesty on guns so why don't DVLA have an amnesty on V5's !!!!!"
They did, when the SVA was introduced. They reissued corrected V5s for kit cars still registered as the donor car provided it could be shown, with MoT or insurance certificates, that the car was in use since its construction. For example, there were Duttons which were described on their V5s as Ford Sports. DVLA reissued V5s which correctly described them as Duttons. This amnesty was a last chance to correct things before new builds were required to go through the SVA test.