Company: HBCYF
Filing Date: 2025-02-25
Form Type: 424B5
Source: 0001193125-25-034819
Chunk: 145

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-25
Form: 424B5
Chunk 145
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regarding the application of the PFIC rules to an investment in Securities or Conversion Shares.

Interest payments on the Securities and
distributions with respect to the Conversion Shares generally will constitute foreign-source, “passive” category income for foreign tax credit purposes and will not be eligible for the dividends-received deduction available to domestic corporations. The amount of a payment on the Securities or the Conversion Shares will include amounts, if any, withheld in respect of UK taxes. See
“—UK Taxation.” Subject to certain limitations, including requirements adopted by the IRS in regulations promulgated in December 2021, UK taxes withheld from payments on the Securities or the Conversion Shares to a U.S. Holder
generally will give rise to a foreign tax credit or deduction for U.S. federal income tax purposes. The foreign tax credit rules are complex. U.S. Holders should consult their tax advisers regarding the creditability or deductibility of foreign
taxes in their particular circumstances.

Automatic Conversion into Conversion Shares

The conversion of Securities into Conversion Shares pursuant to an Automatic Conversion will not be treated as a taxable exchange for U.S.
Holders. A U.S. Holder’s tax basis in Conversion Shares received pursuant

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to an Automatic Conversion will equal the tax basis of the Securities converted, and the holding period of such Conversion Shares will generally include the period during which the Securities
were held prior to the Automatic Conversion. A U.S. Holder’s tax basis in a Security generally will equal the cost of that Security to such holder.

Conversion of Securities into Approved Entity Shares

A conversion or exchange of Securities into Approved Entity Shares after a Qualifying Takeover Event may be a taxable event for U.S. Holders,
depending upon the circumstances. If treated as a taxable event, a U.S. Holder will recognize gain or loss equal to the difference between the fair market value of the Approved Entity Shares received upon the conversion or exchange and the
holder’s tax basis in the Securities. If not treated as a taxable event, the consequences to a U.S. Holder with respect to the receipt of Approved Entity Shares after a Qualifying Takeover Event should be the same as described above in
“—Automatic Conversion into Conversion Shares,” with respect to the receipt of Conversion Shares following an Automatic Conversion.

Assumption of Obligations

The
U.S. federal income tax treatment of an assumption of our obligations under the Securities by either a subsidiary or a holding company of ours (described in “Description of Contingent Convertible Securities