This feature of your control panel allows you to change the IPS TAG (Nominet Tag) for your domain name. An IPS TAG is a way of Nominet (the not for profit company who governs the .uk domain names) giving control of a domain name to a certain company. For example the domain name you have with Delicious Webdesign might currently has the IPS TAG of ENOM. If you want to move your domain name to another provider you would need to change the IPS TAG to that of your new provider.
To change the IPS TAG on this domain name ask your new web hosting provider what their IPS TAG is and then enter it in the transfer form. IPS TAGS are usually all in capitals and are not the same as an Internic handle.
WARNING: This action is not reversible without interaction from a third party (either Nominet UK or the holder of the new IPS TAG). If you change the tag, you will not be able to modify the nameservers through the control panel.
Because .uk domain management is not instantaneous, if you submitted a nameserver change within the last 30 minutes, you should delay changing the IPS TAG as it may cause the nameserver update to fail

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