Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 158

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 158
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 be taxed at these favourable rates. The amount of a dividend includible
in income by a U.S. Holder will be the U.S. dollar value of the pounds sterling received, calculated by reference to the exchange rate
in effect on the date of receipt, regardless of whether the payment is in fact converted into U.S. dollars on such date. If the pounds
sterling are converted into U.S. dollars on the date of receipt, the U.S. Holder generally should not be required to recognize
foreign currency gain or loss in respect of the dividend. If the pounds sterling are converted into U.S. dollars after the date of receipt,
the U.S. Holder may have foreign currency gain or loss, which will be taxed as U.S.-source ordinary income or loss. 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