Thanks for the response. I have done this but it doesn't appear to be working and the option of applying the formatting only to the characters is no longer available..

What exactly isn't working? The character styles that you create must be included with the allowed styles.

Also, note that adding these styles to the template doesn't affect any existing documents already created from the template. You will have to modify the documents separately.

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Stefan Blom
Microsoft Word MVP

Microsoft 365 apps for business
Windows 11 Professional