Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001654954-25-008460
Chunk: 61

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 61
---
        -2 |     |        -5 |
| Remeasurement of deferred tax due to rate changes |         - |     |         3 |     |        -3 |
| Differences in overseas tax rates                 |         7 |     |         - |     |        -9 |
| Policyholder tax                                  |       -35 |     |       -46 |     |       -29 |
| Deferred tax asset in respect of life assurance   
 expenses                                          |       -40 |     |         - |     |        -5 |
| Adjustments in respect of prior years             |        95 |     |       -12 |     |       106 |
| Tax effect of share of results of joint ventures  |         - |     |        -1 |     |         - |
| Provision for Pillar 2 current income taxes       |         - |     |         - |     |        -5 |
| Tax expense                                       |      -960 |     |      -880 |     |      -614 |

**Note 10: Fair values of financial assets and liabilities**

The valuations of financial instruments have been classified into three levels according to the quality and reliability of information used to determine those fair values. Note 17 to the Group's financial statements for the year ended 31 December 2024 details the definitions of the three levels in the fair value hierarchy.

Financial instruments classified as financial assets at fair value through profit or loss, derivative financial instruments, financial assets at fair value through other comprehensive income and financial liabilities at fair value through profit or loss are recognised at fair value.

The Group manages valuation adjustments for its derivative exposures on a net basis; the Group determines their fair values on the basis of their net exposures. In all other cases, fair values of financial assets and liabilities measured at fair value are determined on the basis of their gross exposures.

The following tables provide an analysis of the financial assets and liabilities of the Group that are carried at fair value in the Group's consolidated balance sheet, grouped into levels 1 to 3 based on the degree to which the fair value is observable. There were no significant transfers between level 1 and level 2 during the period.

NOTES TO THE CONDENSED CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS (UNAUDITED) (continued)

Note 10: Fair values of financial assets and liabilities (continued)

| Financial assets                                                 | Level 1 
      £m |     | Level 2 
      £m |     | Level