Company: LLOBF
Filing Date: 2025-02-25
Form Type: 424B2
Source: 0000950103-25-002401
Chunk: 157

Company: Lloyds Banking Group plc
Filing Date: 2025-02-25
Form: 424B2
Chunk 157
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. In addition, this summary does not address the tax treatment of the Additional
Tier 1 Securities following any exercise of the U.K. Bail-in Power, the tax consequences of any variation or substitution of the Additional
Tier 1 Securities as described in “Description of the Additional Tier 1 Securities—Redemption, Purchase, Variation and Substitution—Substitution or Variation,” the tax consequences of the conversion of Additional Tier 1 Securities
to Relevant Shares of an Approved Entity as described in “Description of the Additional Tier 1 Securities—Conversion—Conversion upon the Occurrence of a Relevant Event,” the tax consequences of any Settlement Shares Offer as described in “Description of the Additional Tier 1 Securities— Conversion—Conversion Procedures—Settlement Shares Offer”
or the ownership and disposition of any Relevant Shares, as the U.S. tax treatment of any of these transactions will depend on its terms
and facts that are not yet known. U.S. Holders should consult their tax advisers as to the tax consequences in their particular circumstances
of the ownership, disposition and, if applicable, any conversion or exchange of the Additional Tier 1 Securities and the ownership and
disposition of any Settlement Shares, ADSs or Relevant Shares.

Taxation of the Additional Tier 1 Securities

Characterization of the Additional Tier 1 Securities

We believe, and the remainder of this discussion
assumes, that the Additional Tier 1 Securities will be treated as equity for U.S. federal income tax purposes.

<div align='center'>S-100</div>

Taxation of Stated Interest Payments

Payments of stated interest (including U.K. taxes
withheld and additional amounts paid with respect thereto, if any) will constitute dividend income for U.S. federal income tax purposes
to the extent paid out of our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Because
we do not maintain calculations of our earnings and profits under U.S. federal income tax principles, it is expected that such payments
will be reported to U.S. Holders as 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