Company: LLOBF
Filing Date: 2025-10-28
Form Type: 424B2
Source: 0000950103-25-013729
Chunk: 160

Company: Lloyds Banking Group plc
Filing Date: 2025-10-28
Form: 424B2
Chunk 160
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 Holder has held
the Additional Tier 1 Security for more than one year. The deductibility of capital losses is subject to limitations.

Consequences of an Automatic Conversion

A conversion of Additional Tier 1 Securities into
Settlement Shares or ADSs generally will not be a taxable event for U.S. federal income tax purposes. A U.S. Holder’s tax basis
in, and holding period for, the Settlement Shares or ADSs received upon conversion will generally be the same as the U.S. Holder’s
tax basis in, and holding period of, the Additional Tier 1 Securities.

Taxation of the Settlement Shares and ADSs

This discussion, to the extent it relates to ADSs,
assumes that each obligation under the ADS deposit agreement will be performed in accordance with its terms. In general, a U.S. Holder
of ADSs will be treated as the owner of the underlying ordinary shares represented by those ADSs for U.S. federal income tax purposes.
Accordingly, no gain or loss will be recognized if a U.S. Holder exchanges Settlement Shares for ADSs, or exchanges ADSs for the underlying
ordinary shares.

<div align='center'>S-99</div>

Taxation of Distributions

Distributions paid on Settlement Shares or ADSs
will generally be treated in the manner described above under “—Taxation of Additional Tier 1 Securities—Taxation of Stated Interest Payments”, with the following modifications. In the case of ADSs, a dividend will be included in a U.S. Holder’s
income on the date of the ADS depositary’s receipt of the dividend. The amount of any 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
by the U.S. Holder in the case of Settlement Shares, or the ADS depositary in the case of ADSs, regardless of whether the payment is in
fact converted into U.S. dollars on such date. If the dividend is 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 income. If the dividend is 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.

Sale or Other Taxable Disposition