Under the scrappage scheme most manufacturers are removing the traded in vehicles from dealers and then paying the dealer their £1000 once they have received the certificate of destruction. The Rover mentioned was scrapped by a private individual and then bought complete from the scrap yard and restored but it still took 9 months of wrangling to get a log book reissued.
Once a certificate of destruction has been issued the DVLA will not under any circumstances issue a V5C, also the breakers yards concerned have agreed not to resell any complete vehicles and if they do they will no longer be approved for the program. I tried to buy a 19000 mile 1999 Rover 25 GTI from a dealer 2 weeks ago and even said remove all ID and I will sign anything you want to state the vehicle will never be returned to the road (I wanted it as a track car) and the dealer couldn't do it (and its a dealer I have a cracking relationship with and have been working with for three years). A couple of vehicles have appeared on ebay being sold complete (one was a 99 Discovery TDI) for parts only, with no ID and with a massive hole cut in the roof and floor to ensure it was would be broken but I suspect this is well outside of the regs.

I've spoken to Slverlake and the car will be broken and only parts sold, they will NOT sell the shell even without ID.