Britain has reduced its stake in Lloyds Banking Group to less than 15%, moving closer to a full privatisation, having raised £13 billion so far from the sale of its shares.
Lloyds was rescued during the 2007/09 financial crisis, costing UK taxpayers £20.5 billion and leaving the government with a 43% stake.
Britain's finance ministry began selling its shares in September 2013 and is on track to return the bank to full private ownership next year.
UK finance minister George Osborne has said he wants to return Britain's banking assets to the private sector at a faster pace and is also looking to sell at least three quarters of the government's stake in Royal Bank of Scotland over the next five years.
The latest Lloyds share sales have reduced the government's stake to 14.98%, from 15.9% previously, the bank said.
Since last December Britain's shares in Lloyds have been sold on the stock market by Morgan Stanley through a pre-arranged trading plan that allows for regular disposals provided that the price is above the government's target of 73.6 pence per share.
Under stock exchange rules, Lloyds makes an announcement whenever the government stake's in the bank drops by a full percentage point.
The trading plan is scheduled to continue until the end of the year and the government also aims to conduct sales to retail investors.
Sources familiar with the matter have said that the retail element could form part of a possible final exit for the government next March.
The value of its remaining stake stands at £9 billion, based on current shares prices.
