Company: LLOBF
Filing Date: 2025-06-11
Form Type: 424B2
Source: 0000950103-25-007252
Chunk: 90

Company: Lloyds Banking Group plc
Filing Date: 2025-06-11
Form: 424B2
Chunk 90
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 rate equal to the lowest rate of interest
in effect at any time under the equivalent fixed rate debt instrument, and any interest under the equivalent fixed rate debt instrument
in excess of that rate generally will be treated as part of the stated redemption price at maturity and, therefore, as possibly giving
rise to OID. Based on the application of these rules to the Senior Fixed Rate Notes and Subordinated Notes and the expected issue price
of the Senior Fixed Rate Notes and Subordinated Notes, we do not expect the Senior Fixed Rate Notes or Subordinated Notes to be treated
as issued with OID. The remaining discussion assumes neither the Senior Fixed Rate Notes nor the Subordinated Notes will be treated as
issued with OID.

Interest. Interest on the Notes
(including U.K. tax withheld, if any) will be includable in income by a U.S. holder as ordinary interest income at the time it accrues
or is received, in accordance with the U.S. holder’s method of accounting for U.S. federal income tax purposes. Interest income
from the Notes (including any U.K. tax withheld) will constitute foreign-source income, which may be relevant to a U.S. holder in calculating
the U.S. holder’s foreign tax credit limitation. The limitation on foreign taxes eligible for credit is calculated separately with
respect to specific classes of income. The rules governing foreign tax credits are complex. If any U.K. taxes are imposed on interest
payments, U.S. holders should consult their tax advisers regarding their creditability or deductibility in their particular circumstances
(including any applicable limitations).

Sale, Exchange or Redemption. A
U.S. holder will, upon sale, exchange or redemption of a Note, generally recognize capital gain or loss for U.S. federal income tax purposes
in an amount equal to the difference between the amount realized (not including amounts attributable to accrued interest, which will be
treated as ordinary interest income, as described in “– Interest” above) and the U.S. holder’s tax basis
in the Note. A U.S. holder’s tax basis in a Note generally will equal the cost of the Note to the U.S. holder. A U.S. holder’s
gain or loss will generally be U.S. source capital gain or loss and will be treated as long-term capital gain or loss if the Note has
been held for more than one year at the time of disposition. Long-term capital gains recognized by non-corporate U.S. holders are generally
eligible for reduced