Company: LLOBF
Filing Date: 2025-10-28
Form Type: 424B2
Source: 0000950103-25-013729
Chunk: 155

Company: Lloyds Banking Group plc
Filing Date: 2025-10-28
Form: 424B2
Chunk 155
---
's understanding of current HMRC practice is that securities which are officially listed and admitted to trading on the Global Exchange Market of that Exchange may be regarded as “listed on a recognized stock exchange” for these purposes.

If the Additional Tier 1 Securities cease to be quoted Eurobonds, interest which has a United Kingdom source will generally be paid by LBG under deduction of income tax at the basic rate (currently 20 per cent) unless: (i) another relief applies under domestic law; or (ii) LBG has received a direction to the contrary from HM Revenue & Customs in respect of such relief as may be available pursuant to the provisions of any applicable double taxation treaty.

If interest were paid under deduction of United Kingdom income tax ( e.g.if the Additional Tier 1 Securities ceased to be quoted Eurobonds), holders who are not resident in the United Kingdom may be able to recover all or part of the tax deducted if there is an appropriate provision in an applicable double taxation treaty.

Stamp Duty and Stamp Duty Reserve Tax

The Finance Act 2019 introduced a regime for hybrid capital instruments (the “HCI rules”). The HCI rules contain an exemption from all stamp duties on transfer so that no liability to United Kingdom stamp duty or stamp duty reserve tax (“SDRT”) should arise on the issue or transfer of the Additional Tier 1 Securities provided that the Additional Tier 1 Securities each constitute a “hybrid capital instrument” for the purposes of the HCI rules and there are no arrangements, the main purpose, or one of the main purposes, of which is to secure a tax advantage.

<div align='center'>S-96</div>

The Additional Tier 1 Securities should constitute “hybrid capital instruments” for the purposes of the HCI rules provided that:

| · | LBG is entitled to defer or cancel a payment of interest under the Additional Tier 1 Securities; |

| · | the Additional Tier 1 Securities “have no other significant equity features”; and |

| · | LBG has made an election in respect of the Additional Tier 1 Securities. |

The Additional Tier 1 Securities would “have no other significant equity features” provided that:

| · | the Additional Tier 1 Securities carry neither significant voting rights in LBG nor a right to exercise 
 a dominant influence over LBG;                                                                          |

| · | any provision in the Additional Tier 1 Securities for altering the amount of the principal is limited                                    
 to write-down or conversion events in certain qualifying cases and that is not a right exercisable by the holders