I think that as long as you retain the plates ie: VIN etc. and don't fill in the part of the V5 saying that you've transferred ownership to a trader or have scrapped the vehicle then you should be fine. I intend to cut out any area on the chassis that has the numbers stamped so that the car is not identifiable and then have the relevant bits removed for scrap whilst keeping it sorn'd until I'm ready that way, the DVLA don't know anything about it - although I may have to go for a Q-plate as I want to go down the Zetec route.
HTH.
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