Investors buying shares in the Lloyds Banking Group stand to pocket up to £200 in a year from the first £1,000 they invest, an analyst has predicted.

The Government has confirmed plans to sell at least £2 billion worth of shares to the public next spring.

As part of this, it will offer two key incentives, billed as a reward to the taxpayers who helped bail out the bank in the first place.

The first is a discount of 5% on the market price of shares and the second one bonus share for every 10 purchased and held for a year - essentially 10% extra free.

And once the expected dividend is factored in, a £1,000 investment could be worth an extra £200 in just 12 months, said Hargreaves Lansdown senior analyst Laith Khalaf.

"Based on £1,000 invested, you could expect a £50 price discount, an anticipated £50 dividend in 2016 - if the market price remains at today's level at the time of the sale - and a further £100 in bonus shares a year down the line," he said.

"Of course the dividend is not guaranteed, but that still looks like a pretty attractive package."

The Government has introduced measures to avoid wealthier investors snapping up all the shares. .

The bonus share offer will be capped at £200, meaning no further incentive on shares worth more than £2,000.

It will also prioritise applications of less than £1,000, which could prove significant given that the sale is likely to be oversubscribed.

'Wild horses couldn't drag investors away from this share sale, especially given the discounted price and the dividend stream Lloyds is expected to start churning out," said Mr Khalaf.

He added that the offering was likely to see a lot of demand from pensioners and first-time investors.