Company: LLOBF
Filing Date: 2025-06-11
Form Type: 424B2
Source: 0000950103-25-007252
Chunk: 89

Company: Lloyds Banking Group plc
Filing Date: 2025-06-11
Form: 424B2
Chunk 89
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 rates or in respect of profits,
gains and losses arising from the Notes.

Stamp Duty and Stamp Duty Reserve Tax(“SDRT”).
The following paragraphs are drafted on the basis, as is expected to be the case, that the Notes are “exempt loan capital”
(that is, that section 79(4) of the Finance Act 1986 applies to the Notes).

No U.K. stamp duty or U.K. SDRT should arise on
the issue or transfer of the Notes into a clearance service or depositary receipt arrangement.

No U.K. stamp duty or U.K. SDRT should be payable
on the transfer of the Notes within a clearance service or depositary receipt arrangement.

No U.K. stamp duty or U.K. SDRT should be payable
on the redemption of the Notes.

<div align='center'>S-62</div>

United States

Characterization of the Notes. For
U.S. federal income tax purposes the Notes should be treated as debt instruments and the remainder of the discussion so assumes.

Senior Floating Rate Notes. The Senior
Floating Rate Notes should be treated as “variable rate debt instruments” and are not expected to be issued with original
issue discount (“OID”).

Senior Fixed Rate Notes and Subordinated Notes.
Although the matter is not entirely clear, the Senior Fixed Rate Notes and Subordinated Notes should be treated as “variable rate
debt instruments” that provide for stated interest at a single fixed rate followed by a qualified floating rate (“QFR”)
for U.S. federal income tax purposes.

Under the Treasury regulations applicable to variable
rate debt instruments, in order to determine the amount of OID, if any, and qualified stated interest (“QSI”) in respect of
the Senior Fixed Rate Notes and Subordinated Notes, an equivalent fixed rate debt instrument must be constructed. The equivalent fixed
rate debt instrument is constructed in the following manner: (i) first, the initial fixed rate is converted to a QFR that would preserve
the fair market value of such Senior Fixed Rate Notes and Subordinated Notes, as applicable, and (ii) second, each QFR (including the
QFR determined under clause (i) above) is converted to a fixed rate substitute (which generally will be the value of that QFR as of the
issue date of the Senior Fixed Rate Notes and Subordinated Notes, as applicable). Under the applicable Treasury regulations, the Senior
Fixed Rate Notes and Subordinated Notes generally will be treated as providing for QSI at a