Company: LLOBF
Filing Date: 2025-02-20
Form Type: 6-K
Source: 0001654954-25-001688
Chunk: 49

Company: Lloyds Banking Group plc
Filing Date: 2025-02-20
Form: 6-K
Chunk 49
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 in this document does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006 (the Act). The statutory accounts for the year ended 31 December 2024 will be published on the Group's website and will be delivered to the Registrar of Companies in accordance with section 441 of the Act. The statutory accounts for the year ended 31 December 2023 have been filed with the Registrar of Companies. The report of the auditor on those accounts was unqualified, did not draw attention to any matters by way of emphasis and did not include a statement under sections 498(2) or 498(3) of the Act.

2. Critical accounting judgements and key sources of estimation uncertainty

The critical accounting judgements and key sources of estimation uncertainty made by management in applying the Group's accounting policies are set out in full in the Group's 2024 annual report and accounts. Those affecting the Group's recognition and measurement of allowance for expected credit losses are set out in note 4.**

#### 3. Tax expense
The UK corporation tax rate for the year was 25.0 per cent per cent (2023: 23.5 per cent). The increase in applicable tax rate from 2023 relates to the change in statutory tax rate effective from 1 April 2023. An explanation of the relationship between tax expense and accounting profit is set out below.

|                                                   |   2024 
     £m |     |   2023 
     £m |
| Profit before tax                                 |  5,971 |     |  7,503 |
| UK corporation tax thereon                        | -1,493 |     | -1,763 |
| Impact of surcharge on banking profits            |   -157 |     |   -305 |
| Non-deductible costs: conduct charges             |    -27 |     |    -29 |
| Non-deductible costs: bank levy                   |    -37 |     |    -35 |
| Other non-deductible costs                        |    -73 |     |   -106 |
| Non-taxable income                                |     78 |     |     80 |
| Tax relief on coupons on other equity instruments |    125 |     |    124 |
| Tax-exempt gains on disposals                     |     98 |     |     35 |
| Policyholder tax                                  |    -75 |     |    -61 |
| Deferred tax asset in respect of life assurance