Company: LLOBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001654954-25-008460
Chunk: 60

Company: Lloyds Banking Group plc
Filing Date: 2025-07-24
Form: 6-K
Chunk 60
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There was a £70 million charge in respect of residual value impairment and voluntary terminations within the Group's UK Motor Finance business in the current period (half-year to 30 June 2024: £10 million; half-year to 31 December 2024: £14 million).

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

#### Note 9: Tax
In accordance with IAS 34, the Group's income tax expense for the half-year to 30 June 2025 is based on the best estimate of the weighted-average annual income tax rate expected for the full financial year. The tax effects of one-off items are not included in the weighted-average annual income tax rate, but are recognised in the relevant period.

An explanation of the relationship between tax expense and accounting profit is set out below:

|                                                   | Half-year 
 to 30 Jun 
      2025 
        £m |     | Half-year 
 to 30 Jun 
      2024 
        £m |     | Half-year 
 to 31 Dec 
      2024 
        £m |
| Profit before tax                                 |     3,504 |     |     3,324 |     |     2,647 |
| UK corporation tax thereon at 25.0% (2024: 25.0%) |      -876 |     |      -831 |     |      -662 |
| Impact of surcharge on banking profits            |       -86 |     |       -83 |     |       -74 |
| Non-deductible costs: conduct charges             |         1 |     |         4 |     |       -31 |
| Non-deductible costs: bank levy                   |         - |     |         - |     |       -37 |
| Other non-deductible costs                        |      -127 |     |       -39 |     |       -34 |
| Non-taxable income                                |        19 |     |        27 |     |        51 |
| Tax relief on coupons on other equity instruments |        61 |     |        67 |     |        58 |
| Tax-exempt gains on disposals                     |        25 |     |        33 |     |        65 |
| Tax losses where no deferred tax recognised       |        -4 |     |