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Whilst a child can travel alone on a passport from 14 onwards and a child can apply for an adult passport from the age of 16 (without the requirment for any parental consent), there are no general provisions that would expressly permit a minor to keep a passport if someone with parental responsibility asked that minor to surrender it to them.
I'm sorry that's its bad news but it's important that I give you honest advice, so that you know where you and your grandaughter stand.
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