ISA - tax on dividends. Bond funds.

Wonder if this may help

The new Isa rules : Investors in bond funds suffer no income tax on interest payments because they are able to claim back the 20 per cent tax deducted at source.

If the income is paid from fixed interest funds such as corporate bond funds, we will either receive the payment gross and pay the full amount into your ISA or we will receive it net of 20% tax, and we will reclaim the tax back from HM Revenue & Customs then pay it into your ISA. Please also note that where interest income from fixed interest funds is paid in the form of accumulation units we will also be able to reclaim the tax on your behalf and pay it into your ISA.

I've just bought an M&G corp bond fund through my BSL ISA and I had to be persistent in getting any sensible answer from BSL as to how the tax reclaim happened: initiually, I got lots of "different" advice...

Thanks for those links. Since I am only interested in accumulation units then it looks like the tax on the dividend must be reclaimed by an ISA manager. I am glad to see that HBOS do it, though that doesn't help me as they are not my ISA manager.

I really should have phrased my question differently.

1. What I am looking for is a way to find funds that are eligble for the tax to be reclaimed. Is there a rule that the fund must hold a minimum of fixed interest stock to be eligible? If so what is it?
2. If the fund (UK based and in sterling) includes the word bond in the name, what does that indicate as to the funds holdings?
3. If the fund (UK based and in sterling) has the word bond in the name is it always eligible for the tax on dividend to be reclaimed?

With regard to Invesco Perpetual Corporate Bond and Invesco Perpetual Monthly Income Plus, both these funds are classed as Fixed Interest on Invesco Perpetual's web site.

Morningstar tells me that: Invesco Perpetual Corporate Bond holdings are: Bonds 82%, Cash 17% Invesco Perpetual Monthly Income Plus holdings are: Bonds 70% Cash 12%

So a more specific question is: Are either or both the above funds eligible for tax to be reclaimed on the dividend(s)?

[snip]

Suspect you're going to have to do some digging either with your ISA provider, the fund manager, and the HMRC ISA Helpline

IME, once the questions get more detailed, it takes a while to get to the real answer (from any of the above 3 sources).

Hargreaves Landsdown send me their Investment Times every so often which has a table listing all funds, whether they pay interest or dividend (ie whether the tax credit is reclaimable) and frequency of payment. They might have a copy on their website

The two Invesco ones you mention are listed as Interest and frequency of bi-annual for the Corp Bond fund and monthly (obviously!) for the monthly income plus.