I have only had experience of import old vehicles and I would suggest that swapping anything other than vw available engines of the period would be not allowed , but how do they police it until you have a serious accident maybe ?
As an aside to the historic vehicle malarkey . There is a code which you can apply to vehicle imports which allows you to bring old standard classic vehicles into the country at 5% duty, no vat.. I also used it on an old exhaust system
A little insight for you ..Back in the day I was monitored on how much self generated work I did, it wasn’t enough to just attend any job you were sent to. You were expected to stop check vehicles and people . Stop checking would produce all kinds of results drunk drivers, Wanted people as well as vehicle offences . Bald tyres and the like could be dealt with by court, the vehicle rectification scheme ( get it fixed go to an mot station so they could stamp it done) or in small towns you might even get them to come to the nick to show it was done . Once stopped a car at 3.00 am and found the occupants had broken into a small jewellers and had a load of stolen jewellery on board. Sadly those days are gone and no police out on the streets anymore ..
Think they are looking to make genuine collectors classics exempt… if they are going to allow non original then you could buy a Morris minor shell, fit it with all new modern running gear ,a V8 and electric recaro seats make a new car and claim exemption