I finally got a .co.uk domain transferred from GoDaddy to Namecheap on the second attempt. I assumed that the domain name transfer policy for a .co.uk would be the same as a .com. During the first attempt, it failed to transfer and went into limbo state with some retagging error. I contacted Namecheap and they refunded me the transfer fees and asked me to contact GoDaddy to retag the ISP which I did and initiate the transfer again, this time it went through. However, the 2 years transfer fees which I paid for did not extend my domain expiration by 2 years, it still remained the same as before. I contacted Namecheap and was told that they cannot renew until the domain name is closer to its expiration date. They refunded me my money which was a nice gesture. The thing is that I cannot find any information about transferring .co.uk on Namecheap or GoDaddy which made me assume that it would be treated the same way as the other domains. Apparently, I was wrong. Anyways, just thought I share my experience here in case someone else intend to do the same.
Tranferring UK domains is not as easy as people believe, starting with Nominet regulations requiring an extra charge of £30 http://www.nominet.org.uk/registrants/maintain/transfer Code (markup): Some registrars may require up to £49 for completing the transfer process though. Nominet is the authority regulating UK domains.
Ah, it was a good thing that Namecheap and GoDaddy did not charge me anything for the transfer. Well, this should be my last shift.