Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 159

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 159
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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. 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-101</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. A U.S. Holder may be required to recognize foreign currency gain or loss with respect to
a dividend as described in “—Taxation of Additional Tier 1 Securities—Tax