If you send if off with some sort of confirmation from the start then dvla will just change over the new details and issue a new V5, if you don't and just fill in part 7 and send it off you will get a standard issued letter as below like I got along with your V5 back unchanged

The only three things they wanted proved was engine size, engine number and type of fuel used - nothing complicated
You can use any one of the bullet points as proof, luckily for me as I changed to a honda engine my local honda dealers (after laughing!) were interested in the build progress etc as I was always popping in for parts, so when I got the letter above I showed the honda guys and they issued me on there headed paper literally just the above details, B16a2********, 1595cc, petrol
There was no mention of what car its going in whats come out, what frame used, receipt for any work etc etc, it is just three things on headed paper, I was ordering parts from them so they already had my honda engine number anyway. I even spoke to the lady on the above number and she explained exactly what was needed, if your unsure give them a call, they are more helpful than you think
This was sent off with the V5 and it was changed over. A local garage had offered to look over my car and issue something on paper if needed, but wasn't needed
Sorry for waffling, but honestly it is straightforward and needed nowdays