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Gross payments of interest distributions – Important information for ISA clients

News | 03 May 2017

From 6 April 2017, following a change in the tax rules, income tax will no longer be deducted from interest distribution payments made by our ICVCs.

Prior to that date, the interest distribution payments made from our ICVCs held within an Invesco Perpetual ISA, which is a tax efficient wrapper, were made up of two elements: the distribution net of income tax and the associated  reclaimed income tax, which we referred to as a ‘tax credit’.

Investors holding accumulation shares will have seen the ‘tax credit’ used to purchase additional shares on the pay date of the relevant fund.

For all future interest distribution payments, as these will be paid gross of income tax, there will be no tax to reclaim and the full amount of the distribution will be allocated to the capital assets of the fund on the pay date and will thereby be reflected in the share prices of the fund.

This means that investors holding accumulation shares will no longer see additional shares being purchased on the pay date of the relevant fund.

The following Invesco Perpetual funds pay interest distributions:

Invesco Perpetual Corporate Bond Fund
Invesco Perpetual Distribution Fund
Invesco Perpetual Global Bond Fund
Invesco Perpetual Global Distribution Fund
Invesco Perpetual Global Emerging Markets Bond Fund
Invesco Perpetual Global Financial Capital Fund
Invesco Perpetual High Yield Fund
Invesco Perpetual Money Fund
Invesco Perpetual Monthly Income Plus Fund
Invesco Perpetual Tactical Bond Fund

More information

If you have any questions, please contact us on freephone 0800 085 8677. We’re available Monday to Friday, between 8.30am and 6pm.

Investment risks

The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Important information

For the most up to date information on our funds, please refer to the relevant fund and share class-specific Key Investor Information Documents, the Supplementary Information Document, the ICVC ISA Terms & Conditions, the Annual or Interim Short Reports and the Prospectus, which are available using the contact details shown. For details of fund specific risks, please refer to the relevant Key Investor Information Documents.