Derr... nice as that is, the 300Tdi wasn't fitted till 1994; the 40 year tax and MOT exemption only applies to unmodified vehicles as far as I'm aware
I hope I'm wrong.
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Historic (classic) vehicles: MOT and vehicle tax
Vehicle tax exemptions and MOT exemptions for vehicles built or first registered before 1986.www.gov.uk
It depends if it's classed as a substantial change which based on other 90 and 110 conversions that went from Td to Tdi I know of it doesn't affect it. One I do know that was converted from V8 to Tdi that wasn't allowed to be exempt due to the change of the number of cylinders.