Company: LLOBF
Filing Date: 2025-10-28
Form Type: 424B2
Source: 0000950103-25-013729
Chunk: 161

Company: Lloyds Banking Group plc
Filing Date: 2025-10-28
Form: 424B2
Chunk 161
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A U.S. Holder’s sale or other taxable disposition
of Settlement Shares or ADSs will generally be treated in the manner described above under “—Taxation of Additional Tier 1 Securities—Sale, Redemption or Other Taxable Disposition”.

Passive Foreign Investment Company (PFIC) Considerations

In general, a foreign corporation will be a PFIC
for any taxable year in which, after taking into account the income and assets of the corporation and certain subsidiaries pursuant to
applicable “look-through rules”, either (i) at least 75% of its gross income is “passive income” or (ii) at least
50% of the average value of its assets (generally determined on a quarterly basis) consists of assets that produce, or are held for the
production of, passive income. Although interest income is generally passive income, under proposed Treasury regulations (which are proposed
to be effective for taxable years beginning after 1994, and on which taxpayers currently may rely pending finalization) certain banking
income of licensed active banks is treated as non-passive. We believe we were not a PFIC for our taxable year ended December 31, 2024,
and we do not expect to be a PFIC in the current taxable year. However, because the proposed Treasury regulations may not be finalized
in their current form and because our PFIC status for any taxable year depends on the composition of our income and assets, the value
of our assets and the manner in which we operate our business, there can be no assurance that we will not be a PFIC for any taxable year. If
we are a PFIC for any taxable year during which a U.S. Holder owns Additional Tier 1 Securities, Settlement Shares or ADSs, the U.S. Holder
will generally be subject to adverse U.S. federal income tax consequences and certain reporting obligations. U.S. Holders should consult
their own tax advisers as to the potential application of the PFIC rules to the ownership and disposition of the Additional Tier 1 Securities,
Settlement Shares or ADSs.

Information Reporting and Backup Withholding

Payments on, and proceeds from the disposition
of, Additional Tier 1 Securities, Settlement Shares or ADSs that are made within the United States or through certain U.S.-related financial
intermediaries may be subject to information reporting and backup withholding unless (i) the U.S. Holder is an exempt recipient or (ii)
in the case of backup withholding, the U.S. Holder provides