I changed the engine in my Hunter from a 2.0 litre Ford to a BMW 2.5 m20, I sent off the v5 to be updated, it took me 3 months to get the DVLA to give me back an updated V5 and as they have the original you can't tax the car while they have it.
They wrote to me asking for proof of where the replacement engine had been sourced from. I had to provide original invoices for the replacement engine showing fuel type, exact cc, engine number. Fortunatley the specialist BMW breaker I bought the engine from was really helpful and generated a new receipt with all the relevant information on it. If it had been a guy on eBay purchase I would have been stuffed.
You need to make sure you can supply that sort of detail or they will refuse to update the V5.
In my case it took about 3 letters, a couple of phone calls to the the guy in DVLA handling the case and a very helpful BMW breaker. I sent the V5 off in November 2012 and finally got the updated V5 in February 2013.
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