The EID chip itself only contains a number - imagine it like a barcode. It's the scanner and computer programme that turn into into UK123456/01234 (or however many digits it has!). This number is assigned to the lamb at birth. If the lamb is intended to be kept, it should have two tags: one will be yellow and contain the microchip; the other will be any colour apart from red or black and have the same number printed on.
Older animals have all kinds of tag numbers, or *may* have been retagged with EID tags.
Where it gets complicated is if the lamb was intended for slaughter at 1 year of age (or under). The following is from memory, please correct if I get it wrong
I can't remember if it runs to Dec 1st, or to the following spring? But in this case, all your slaughter lambs could be tagged with a generic number e.g. UK123456, and only one tag. Now, if you change your mind and the lamb is still in it's place of birth, you can swap the tags and give it a full number. BUT you cannot do that if the lamb has been moved, as obviously you would have no idea which particular lamb that was.
TL;DR: if you want a lamb to keep, make sure it has double tags and an individual number!
RED tags signify a replacement (e.g. if it came in from the field having ripped its tags out)
BLACK tags signify that the EID chip is actually in a bolus in the rumen.
YELLOW tags are reserved for the tags containing the microchip.
Clear as mud, no?