Company: LLOBF
Filing Date: 2025-10-28
Form Type: 424B2
Source: 0000950103-25-013729
Chunk: 159

Company: Lloyds Banking Group plc
Filing Date: 2025-10-28
Form: 424B2
Chunk 159
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 dividends. The payments will not be eligible for the dividends-received deduction generally allowed
to corporate U.S. Holders. Subject to applicable limitations, dividends paid to certain non-corporate U.S. Holders may be taxable at the
favourable rates applicable to long-term capital gain. Non-corporate U.S. Holders should consult their own tax advisers to determine whether
they are subject to any special rules that limit their ability to be taxed at these favourable rates. Dividends will be foreign-source
income. If the Additional Tier 1 Securities cease to be listed on a recognized stock exchange (as described in “U.K. Tax Consequences—Withholding”),
U.S. Holders should consult their tax advisers regarding the consequences of any U.K. withholding tax.

Constructive Distributions

The Conversion Price in respect of the Additional
Tier 1 Securities may be adjusted in certain circumstances pursuant to anti-dilution provisions. Under the Code and applicable Treasury
regulations, conversion price adjustments (or lack thereof) that have the effect of increasing the interests of owners of convertible
securities in an issuer’s assets or earnings and profits may, in certain circumstances (including in the case of adjustments for
cash dividends), result in a deemed distribution to the beneficial owners of the securities. Any deemed distribution will generally
be taxable as a dividend, as described above. U.S. Holders should consult their tax advisers as to the application of these
rules to the Additional Tier 1 Securities and the tax consequences of any adjustments to the Conversion Price.

Sale, Redemption or Other Taxable Disposition

Upon the sale, redemption or other disposition
of an Additional Tier 1 Security (other than the receipt of Settlement Shares or ADSs upon an Automatic Conversion, which will be treated
as described below), a U.S. Holder will generally recognize capital gain or loss for U.S. federal income tax purposes, provided that,
in the case of a redemption, the U.S. Holder does not own, and is not deemed to own, any of our ordinary shares at such time (or the redemption
is otherwise treated as “not essentially equivalent to a dividend”). The amount of such gain or loss will equal the difference
between the amount realized and the U.S. Holder’s tax basis in such Additional Tier 1 Security, in each case as determined in U.S.
dollars. Any capital gain or loss will generally be U.S.-source and will be long-term capital gain or loss if the U.S.