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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-05688

Invesco Municipal Premium Income Trust

(Exact name of registrant as specified in charter)

1555 Peachtree Street, N.E., Atlanta, Georgia 30309

(Address of principal executive offices) (Zip code)

Philip A. Taylor 1555 Peachtree Street, N.E., Atlanta, Georgia 30309

(Name and address of agent for service)

Registrant’s telephone number, including area code: (713) 626-1919

Date of fiscal year end: 2/28

Date of reporting period: 8/31/11

Item 1. Reports to Stockholders.

Invesco Municipal Premium Income Trust
Semiannual Report to Shareholders § August 31, 2011
NYSE: PIA

2	Letters to Shareholders
3	Trust Performance
4	Dividend Reinvestment Plan
5	Schedule of Investments
13	Financial Statements
16	Notes to Financial Statements
22	Financial Highlights
24	Approval of Investment Advisory and Sub-Advisory Agreements
26	Results of Proxy

Unless otherwise noted, all data provided by Invesco.

NOT FDIC INSURED MAY LOSE VALUE      NO BANK GUARANTEE

Letters to Shareholders

Bruce Crockett

Dear Fellow Shareholders:

In today’s volatile market environment, investors face risks that could make it more difficult to achieve their long-term financial goals – a secure retirement, home ownership, a child’s college education. Although the markets are complex and dynamic, there are ways to simplify the process and potentially increase your odds of achieving your goals. The best approach is to create a solid financial plan that helps you save and invest in ways that anticipate your needs over the long term.

     Your financial adviser can help you define your financial plan, develop an appropriate investment strategy and put you in a better position to achieve your financial goals over the long term. This can take some of the guesswork out of the process and help you make thoughtful investments. Your financial adviser also can help you better understand your tolerance for risk, so that your investment approach lets you sleep at night while getting you closer to your goals. Lastly, your financial adviser can develop an asset allocation strategy that seeks to balance your investment approach, providing some protection against a decline in the markets while allowing you to participate in rising markets. Invesco calls this type of approach “intentional investing.” It means thinking carefully, planning thoughtfully and acting deliberately.

     While no investment can guarantee favorable returns, your Board remains committed to managing costs and enhancing the performance of Invesco’s funds as part of our Investor First orientation. We continue to oversee the funds with the same strong sense of responsibility for your money and your continued trust that we’ve always maintained.

     As always, please contact me at bruce@brucecrockett.com with any questions or concerns you may have. On behalf of your Board, we look forward to continuing to represent your interests and serving your needs.

Sincerely,

Bruce L. Crockett
Independent Chair
Invesco Funds Board of Trustees

Philip Taylor

Dear Shareholders:

Enclosed is important information about your Fund, its performance and its holdings as of the close of the reporting period.

     In light of economic uncertainty and market volatility, I suggest you check the timely market updates and commentary from many of our fund managers and other investment professionals at invesco.com/us. On our website, you also can obtain information about your account at any hour of the day or night. I invite you to visit and explore the tools and information we offer at invesco.com/us.

     As we’ve seen over the last several years, market conditions can change – often suddenly and dramatically. That’s one reason financial advisers typically advise their clients to be well diversified and to maintain a long-term investment focus. While diversification can’t guarantee a profit or protect against loss, it can cushion the impact of dramatic market moves. Maintaining a long-term investment focus for your long-term goals – financing your retirement or your children’s education, for example – may help you avoid making rash investment decisions based on short-term market swings.

     Our funds are managed strictly according to their stated investment objectives and strategies, with robust risk oversight using consistent, repeatable investment processes that don’t change in response to short-term market events. This disciplined approach can’t guarantee a profit; no investment can do that, since all involve some measure of risk. But it can ensure that your money is managed the way we said it would be, and that it’s managed with a long-term focus.

     If you have questions about your account, please contact one of our client service representatives at 800 341 2929. If you have a general Invesco-related question or comment for me, I invite you to email me directly at phil@invesco.com. All of us at Invesco look forward to serving your investment management needs for many years to come. Thank you for investing with us.

Sincerely,

Philip Taylor
Senior Managing Director, Invesco Ltd.

2 Invesco Municipal Premium Income Trust

Trust Performance

Performance summary

Cumulative total returns, 2/28/11 to 8/31/11

Trust at NAV	11.54	%
Trust at Market Value	8.82
Barclays Capital Municipal Bond Index▼	6.39
Market Price Discount to NAV as of 8/31/11	-6.06

^▼ Lipper Inc.

The performance data quoted represent past performance and cannot guarantee comparable future results; current performance may be lower or higher. Investment return, net asset value and common share market price will fluctuate so that you may have a gain or loss when you sell shares. Please visit invesco.com/performance for the most recent month-end performance. Performance figures reflect Trust expenses, the reinvestment of distributions (if any) and changes in net asset value (NAV) for performance based on NAV and changes in market price for performance based on market price.

     Since the Trust is a closed-end management investment company, shares of the Trust may trade at a discount or premium from the NAV. This characteristic is separate and distinct from the risk that NAV could decrease as a result of investment activities and may be a greater risk to investors expecting to sell their shares after a short time. The Trust cannot predict whether shares will trade at, above or below NAV. The Trust should not be viewed as a vehicle for trading purposes. It is designed primarily for risk-tolerant long-term investors.

The Barclays Capital Municipal Bond Index is an unmanaged index considered representative of the tax-exempt bond market.

     The Trust is not managed to track the performance of any particular index, including the index(es) defined here, and consequently, the performance of the Trust may deviate significantly from the performance of the index(es).

     A direct investment cannot be made in an index. Unless otherwise indicated, index results include reinvested dividends, and they do not reflect sales charges.

Portfolio Management Update

The following individuals are jointly and primarily responsible for the day-to-day management of Invesco Municipal Premium Income Trust.

     Effective June 28, 2011, Richard Berry joined the Trust’s management team. He has been associated with Invesco or its affiliates in an investment capacity since 1987.

     Effective June 28, 2011, Stephen Turman joined the Trust’s management team. He has been associated with

NYSE Symbol PIA

Invesco or its affiliates in an investment capacity since 1985.

     Thomas Byron began managing the Trust in 2009 and has been associated with Invesco or its affiliates in an investment capacity since 2010. From 1981 to 2010, Mr. Byron was associated with Van Kampen Asset Management or its affiliates in an investment capacity.

     Robert Stryker began managing the Trust in 2009 and has been associated with Invesco or its affiliates in an invest-

ment capacity since 2010. From 1994 to 2010, Mr. Stryker was associated with Van Kampen Asset Management or its affiliates in an investment capacity.

     Robert Wimmel began managing the Trust in 2009 and has been associated with Invesco or its affiliates in an investment capacity since 2010. From 1996 to 2010, Mr. Wimmel was associated with Van Kampen Asset Management or its affiliates in an investment capacity.

3 Invesco Municipal Premium Income Trust

Dividend Reinvestment Plan

The dividend reinvestment plan (the Plan) offers you a prompt and simple way to reinvest your dividends and capital gains distributions (Distributions) into additional shares of your Trust. Under the Plan, the money you earn from dividends and capital gains distributions will be reinvested automatically in more shares of your Trust, allowing you to potentially increase your investment over time.

Plan benefits

n	Add to your account:
	You may increase the amount of shares in your Trust easily and automatically with the Plan.
n	Low transaction costs:
	Transaction costs are low because the new shares are bought in blocks and the brokerage commission is shared among all participants.
n	Convenience:
	You will receive a detailed account statement from Computershare Trust Company, N.A. (the Agent) which administers the Plan. The statement shows your total Distributions, date of investment, shares acquired, and price per share, as well as the total number of shares in your reinvestment account. You can also access your account via the Internet. To do this, please go to invesco.com/us.
n	Safekeeping:
	The Agent will hold the shares it has acquired for you in safekeeping.

How to participate in the Plan

If you own shares in your own name, you can participate directly in the Plan. If your shares are held in “street name” – in the name of your brokerage firm, bank, or other financial institution – you must instruct that entity to participate on your behalf. If they are unable to participate on your behalf, you may request that they reregister your shares in your own name so that you may enroll in the Plan.

How to enroll

To enroll in the Plan, please read the Terms and Conditions in the Plan brochure. You can enroll in the Plan by visiting invesco.com/us, calling toll-free 800 341 2929 or notifying us in writing at Invesco Closed-End Funds, Computershare Trust Company, N.A., P.O. Box 43078, Providence, RI 02940-3078. Please include your Trust name and account number and ensure that all shareholders listed on the account sign these written instructions. Your participation in the Plan will begin with the next Distribution payable after the Agent receives your authorization, as long as they receive it before the “record date,” which is generally one week before such Distributions are paid. If your authorization arrives after such record date, your participation in the Plan will begin with the following Distributions.

How the Plan Works

If you choose to participate in the Plan, whenever your Trust declares such Distributions, it will be invested in additional shares of your Trust that are purchased on the open market.

Costs of the Plan

There is no direct charge to you for reinvesting Distributions because the Plan’s fees are paid by your Trust. However, you will pay your portion of any per share fees incurred when the new shares are purchased on the open market. These fees are typically less than the standard brokerage charges for individual transactions, because shares are purchased for all Participants in blocks, resulting in lower commissions for each individual Participant. Any per share or service fees are averaged into the purchase price. Per share fees include any applicable brokerage commissions the Agent is required to pay.

Tax implications

The automatic reinvestment of Distributions does not relieve you of any income tax that may be due on Distributions. You will receive tax information annually to help you prepare your federal income tax return.

     Invesco does not offer tax advice. The tax information contained herein is general and is not exhaustive by nature. It was not intended or written to be used, and it cannot be used, by any taxpayer for avoiding penalties that may be imposed on the taxpayer under U.S. federal tax laws. Federal and state tax laws are complex and constantly changing. Shareholders should always consult a legal or tax adviser for information concerning their individual situation.

How to withdraw from the Plan

You may withdraw from the Plan at any time by calling 800 341 2929, visiting invesco.com/us or by writing to Invesco Closed-End Funds, Computershare Trust Company, N.A., P.O. Box 43078, Providence, RI 02940-3078. Simply indicate that you would like to withdraw from the Plan, and be sure to include your Trust name and account number. Also, ensure that all shareholders listed on the account have signed these written instructions. If you withdraw, you have three options with regard to the shares held in the Plan:

1. If you opt to continue to hold your non-certificated shares, whole shares will be held by the Agent and fractional shares will be sold. The proceeds will be sent via check to your address of record after deducting per share fees. Per share fees include any applicable brokerage commissions the Agent is required to pay.

2.

If you opt to sell your shares through the Agent, we will sell all full and fractional shares and send the proceeds via check to your address of record after deducting per share fees. Per share fees include any applicable brokerage commissions the Agent is required to pay.

3.

You may sell your shares through your financial adviser through the Direct Registration System (DRS). DRS is a service within the securities industry that allows Trust shares to be held in your name in electronic format. You retain full ownership of your shares, without having to hold a stock certificate. You should contact your financial adviser to learn more about any restrictions or fees that may apply.

   To obtain a complete copy of the Dividend Reinvestment Plan, please call our Client Services department at 800 341 2929 or visit invesco.com/us.

4 Invesco Municipal Premium Income Trust

Schedule of Investments

August 31, 2011

(Unaudited)

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Municipal Obligations–167.23%
Alabama–2.30%
Birmingham (City of) Airport Authority; Series 2010, RB (INS–AGM)(a)		5.25	%		07/01/30	$	450	$	470,011
University of Alabama Board of Trustees; Series 2004 A, RB (INS–NATL)(a)		5.25	%		07/01/20		2,500		2,752,450
									3,222,461
Arizona–7.17%
Glendale (City of) Industrial Development Authority (John C. Lincoln Health Network); Series 2005 B, Ref. Hospital RB		5.00	%		12/01/37		1,075		923,586
Maricopa County Pollution Control Corp. (Arizona Public Service Co.–Palo Verde); Series 2009 A, Ref. PCR(b)(c)		6.00	%		05/01/14		300		330,252
Pima (County of) Industrial Development Authority (Tucson Electric Power Co.); Series 2010 A, IDR		5.25	%		10/01/40		550		499,274
Salt River Project Agricultural Improvement & Power District; Series 2002 B, Electric System RB(d)		5.00	%		01/01/31		8,000		8,305,920
									10,059,032
California–20.38%
California (State of) Infrastructure & Economic Development Bank (The Scripps Research Institute); Series 2005 A, RB		5.00	%		07/01/29		2,000		2,047,820
California (State of);
Series 2004 A, Economic Recovery Unlimited Tax GO Bonds		5.00	%		07/01/16		2,155		2,162,887
Series 2005, Various Purpose Unlimited Tax GO Bonds		5.00	%		03/01/27		2,700		2,800,629
Camarillo (City of) Public Finance Authority; Series 2005, Wastewater RB (INS–AMBAC)(a)		5.00	%		06/01/36		2,000		2,018,780
East Bay Municipal Utility District; Series 2010 A, Ref. Sub. Water System RB		5.00	%		06/01/36		1,050		1,121,620
Golden State Tobacco Securitization Corp.; Series 2005 A, Enhanced Tobacco Settlement Asset-Backed RB		5.00	%		06/01/45		2,000		1,766,680
Kern (County of) Board of Education; Series 2006 A, Ref. COP (INS–NATL)(a)		5.00	%		06/01/31		1,000		940,140
Los Angeles (City of) Department of Water & Power; Series 2004 C, Water System RB (INS–NATL)(a)(d)		5.00	%		07/01/25		3,000		3,255,180
Oakland (Port of);
Series 2002 L, RB(b)(e)(f)		5.00	%		11/01/12		110		115,793
Series 2002 L, RB (INS–NATL)(a)(e)		5.00	%		11/01/21		890		900,280
Oxnard (City of) Financing Authority (Redwood Trunk Sewer & Headworks); Series 2004 A, Wastewater RB (INS–NATL)(a)		5.00	%		06/01/29		3,000		3,120,360
Sacramento (County of); Series 2010, Sr. Airport System RB		5.00	%		07/01/40		650		648,479
San Diego (County of) Water Authority; Series 2004 A, Water Revenue COP (INS–AGM)(a)(d)		5.00	%		05/01/29		3,000		3,100,680
San Diego Community College District (Election of 2006); Series 2011, Unlimited Tax GO Bonds		5.00	%		08/01/36		660		691,792
San Francisco (City & County of) (Laguna Honda Hospital); Series 2008 R3, Ref. Unlimited Tax GO Bonds (INS–AGC)(a)(d)		5.00	%		06/15/28		460		476,569
San Francisco (City & County of) Airport Commission (San Francisco International Airport);
Series 2011 F, Ref. Second Series RB(e)		5.00	%		05/01/25		220		224,723
Series 2011 F, Ref. Second Series RB(e)		5.00	%		05/01/26		440		445,355
San Francisco (City & County of) Public Utilities Commission (Water System Improvement Program); Subseries 2011 A, Water RB		5.00	%		11/01/36		945		996,172
Twin Rivers Unified School District; Series 2009, Unlimited Tax CAB GO BAN(g)		0.00	%		04/01/14		600		563,850
William S. Hart Union High School District (Election of 2008); Series 2009 A, Unlimited Tax CAB GO Bonds(g)		0.00	%		08/01/32		4,650		1,176,403
									28,574,192
Colorado–6.11%
Colorado (State of) Health Facilities Authority (Catholic Health Initiatives); Series 2009 A, RB		5.00	%		07/01/39		1,500		1,497,660
Denver (City of) Convention Center Hotel Authority; Series 2006, Ref. Sr. RB (INS–SGI)(a)		5.00	%		12/01/30		2,000		1,785,880

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

5        Invesco Municipal Premium Income Trust

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Colorado–(continued)
Fort Collins (City of);
Series 2004 A, Lease COP (INS–AMBAC)(a)		5.38	%		06/01/21	$	2,040	$	2,226,130
Series 2004 A, Lease COP (INS–AMBAC)(a)		5.38	%		06/01/22		2,155		2,356,794
Regional Transportation District (Denver Transit Partners, LLC–Eagle P3); Series 2010, Private Activity RB		6.00	%		01/15/41		700		700,420
									8,566,884
Connecticut–0.77%
Connecticut (State of) Development Authority (Aquarion Water Co.); Series 2011, Water Facilities RB(e)		5.50	%		04/01/21		1,000		1,074,930
District of Columbia–3.24%
District of Columbia;
Series 2006 B-1, Ballpark RB (INS–NATL)(a)		5.00	%		02/01/31		3,000		2,912,790
Series 2008 E, Unlimited Tax GO Bonds (INS–BHAC)(a)(d)		5.00	%		06/01/26		380		412,201
Series 2008 E, Unlimited Tax GO Bonds (INS–BHAC)(a)(d)		5.00	%		06/01/27		380		409,366
Series 2008 E, Unlimited Tax GO Bonds (INS–BHAC)(a)(d)		5.00	%		06/01/28		760		814,044
									4,548,401
Florida–18.05%
Broward (County of) Educational Facilities Authority (Nova Southeastern University); Series 2006, RB (INS–AGC)(a)		5.00	%		04/01/31		2,000		2,021,940
Florida (State of) Ports Financing Commission (State Transportation Trust Fund); Series 2011 B, Ref. RB(e)		5.13	%		06/01/27		480		491,995
JEA; Series 2005 B, Water & Sewer System RB (INS–NATL)(a)		5.00	%		10/01/24		2,460		2,568,363
Miami-Dade (County of) (Florida Public Improvement); Series 1988 DD, Unlimited Tax GO Bonds (INS–AMBAC)(a)		7.75	%		10/01/15		830		1,042,024
Miami-Dade (County of) (Miami International Airport);
Series 2000 B, Aviation RB (INS–NATL)(a)		5.75	%		10/01/24		2,500		2,534,000
Series 2009 B, Aviation RB (INS–AGC)(a)		5.00	%		10/01/25		650		697,047
Miami-Dade (County of) Expressway Authority; Series 2010 A, Ref. Toll System RB		5.00	%		07/01/40		1,000		991,630
Miami-Dade (County of) Health Facilities Authority (Miami Children’s Hospital); Series 2010 A, Ref. Hospital RB		6.00	%		08/01/30		260		271,284
Orlando (City of) Utilities Commission; Series 2003 B, Ref. Water & Electric RB		5.00	%		10/01/22		5,000		5,300,300
Palm Beach (County of) Solid Waste Authority; Series 2009, Improvement RB (INS–BHAC)(a)		5.50	%		10/01/23		600		709,542
South Miami Health Facilities Authority (Baptist Health South Florida Obligated Group); Series 2007, Hospital RB		5.00	%		08/15/42		8,000		7,839,360
St. Johns (County of) Industrial Development Authority (Glenmoor); Series 2006 A, Health Care RB		5.25	%		01/01/26		1,000		842,350
									25,309,835
Georgia–6.67%
Atlanta (City of); Series 1999 A, Water & Wastewater RB (INS–NATL)(a)		5.50	%		11/01/22		3,000		3,446,250
Burke (County of) Development Authority (Oglethorpe Power Corp.–Plant Vogtle); Series 2011 A, PCR(b)(c)		2.50	%		03/01/13		490		498,815
Georgia (State of) Road & Tollway Authority;
Series 2003, Gtd. RB(b)(f)		5.00	%		10/01/13		2,000		2,193,980
Series 2003, Gtd. RB		5.00	%		10/01/23		3,000		3,218,070
									9,357,115
Hawaii–0.91%
Hawaii (State of) Department of Budget & Finance (Hawai’i Pacific Health Obligated Group); Series 2010 B, Special Purpose RB		5.75	%		07/01/40		370		359,821
Hawaii (State of); Series 2010 A, Airport System RB		5.00	%		07/01/39		900		913,104
									1,272,925
Idaho–1.27%
Idaho (State of) Housing & Finance Association (Federal Highway Trust Fund); Series 2008 A, Grant & RAB (INS–AGC)(a)		5.25	%		07/15/24		1,240		1,377,318

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

6        Invesco Municipal Premium Income Trust

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Idaho–(continued)
University of Idaho Regents; Series 2011, Ref. General RB(b)(c)		5.25	%		04/01/21	$	350	$	404,365
									1,781,683
Illinois–12.15%
Chicago (City of) (Chicago O’Hare International Airport); Series 2005 A, Third Lien General Airport RB (INS–NATL)(a)		5.25	%		01/01/26		4,000		4,156,560
Chicago (City of) Park District; Series 2004 A, Limited Tax GO Bonds (INS–AMBAC)(a)		5.00	%		01/01/28		2,500		2,574,650
Chicago (City of);
Series 1996 A-2, Ref. Unlimited Tax GO Bonds (INS–AMBAC)(a)		5.50	%		01/01/18		700		781,907
Series 2007 A, Ref. & Project Unlimited Tax GO Bonds (INS–AGM)(a)(d)(h)		5.00	%		01/01/37		3,300		3,315,114
Illinois (State of) Finance Authority (Little Co. of Mary Hospital & Health Care Centers); Series 2010, RB		5.38	%		08/15/40		625		588,763
Illinois (State of) Finance Authority (Northwestern Memorial Hospital); Series 2009 B, RB		5.00	%		08/15/16		380		436,818
Illinois (State of) Finance Authority (Resurrection Health Care Corp.); Series 2009, Ref. RB		6.13	%		05/15/25		775		804,125
Illinois (State of) Finance Authority (Rush University Medical Center Obligated Group); Series 2009 A, RB		7.25	%		11/01/38		295		324,108
Illinois (State of) Finance Authority (Swedish Covenent Hospital);
Series 2010 A, Ref. RB		5.75	%		08/15/29		1,105		1,106,425
Series 2010 A, Ref. RB		6.00	%		08/15/38		580		579,211
Illinois (State of) Finance Authority (The University of Chicago Medical Center); Series 2011 C, RB		5.50	%		08/15/41		675		700,940
Metropolitan Pier & Exposition Authority (McCormick Place Expansion); Series 2010 A, RB		5.50	%		06/15/50		650		659,438
Railsplitter Tobacco Settlement Authority; Series 2010, RB		5.50	%		06/02/23		950		1,002,734
									17,030,793
Indiana–1.55%
Indiana (State of) Finance Authority (Clarion Health Obligated Group); Series 2006 A, Hospital RB		5.25	%		02/15/40		1,080		1,067,386
Indiana (State of) Finance Authority (CWA Authority); Series 2011 B, Second Lien Wastewater Utility RB		5.25	%		10/01/31		660		690,749
Rockport (City of) (Indiana Michigan Power Co.); Series 2009 B, Ref. PCR(b)(c)		6.25	%		06/02/14		375		417,604
									2,175,739
Iowa–1.36%
Iowa (State of) (Iowa Jobs Program);
Series 2009 A, Special Obligation RB(d)(h)		5.00	%		06/01/25		975		1,091,941
Series 2009 A, Special Obligation RB(d)(h)		5.00	%		06/01/26		730		809,212
									1,901,153
Kansas–0.26%
Kansas (State of) Development Finance Authority (Adventist Health System/Sunbelt Obligated Group); Series 2009 C, Hospital RB		5.50	%		11/15/29		335		364,215
Kentucky–2.66%
Kentucky (State of) Economic Development Finance Authority (Owensboro Medical Health System, Inc.); Series 2010 A, Hospital RB		6.50	%		03/01/45		450		460,175
Louisville (City of) & Jefferson (County of) Metropolitan Sewer District; Series 2001 A, Sewer & Drainage System RB(b)(f)		5.38	%		11/15/11		3,215		3,272,677
									3,732,852
Louisiana–4.07%
Lafayette (City of) Public Trust Financing Authority (Ragin Cajun Facilities, Inc.–Housing & Parking); Series 2010, RB (INS–AGM)(a)		5.25	%		10/01/30		550		581,719
Louisiana (State of) Offshore Terminal Authority (Louisiana Offshore Oil Port LLC); Series 2007 B-2, Deepwater Port RB(b)(c)		4.30	%		10/01/11		750		752,572

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

7        Invesco Municipal Premium Income Trust

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Louisiana–(continued)
Louisiana (State of) Public Facilities Authority (Ochsner Clinic Foundation); Series 2002 B, RB(b)(f)		5.50	%		05/15/26	$	2,000	$	2,470,960
St. John the Baptist (Parish of) (Marathon Oil Corp.); Series 2007 A, RB		5.13	%		06/01/37		2,000		1,907,760
									5,713,011
Maryland–2.08%
Baltimore (County of) (Oak Crest Village, Inc. Facility); Series 2007 A, RB		5.00	%		01/01/37		505		466,777
Maryland (State of) Community Development Administration; Series 2006 P, Residential RB(e)		4.63	%		09/01/31		2,000		1,954,060
Maryland Economic Development Corp. (Terminal); Series 2010 B, RB		5.75	%		06/01/35		500		494,205
									2,915,042
Massachusetts–0.57%
Massachusetts (State of) Development Finance Agency (Berklee College of Music); Series 2007 A, RB		5.00	%		10/01/32		500		506,780
Massachusetts (State of) Development Finance Agency (Tufts Medical Center); Series 2011 I, RB		6.75	%		01/01/36		275		290,955
									797,735
Michigan–1.22%
Lansing (City of) Board of Water & Light; Series 2011 A, Utility System RB		5.00	%		07/01/37		750		781,005
Wayne State University Board of Governors; Series 2008, Ref. General RB (INS–AGM)(a)		5.00	%		11/15/25		870		935,676
									1,716,681
Minnesota–0.16%
Minnesota (State of) Housing Finance Agency (Rental Housing); Series 1995 D, RB (INS–NATL)(a)		6.00	%		02/01/22		220		220,326
Missouri–2.84%
Fenton (City of) (Gravois Bluffs Redevelopment); Series 2006, Ref. Tax Increment Allocation RB		4.50	%		04/01/21		970		988,760
Kansas City (City of) Industrial Development Authority (Downtown Redevelopment District);
Series 2011 A, Ref. RB		5.50	%		09/01/24		1,000		1,128,180
Series 2011 A, Ref. RB		5.50	%		09/01/28		430		465,040
Missouri (State of) Health & Educational Facilities Authority (Missouri Baptist Medical Center); Series 1989, Health Facilities RB(f)		7.63	%		07/01/18		1,230		1,398,756
									3,980,736
Montana–0.59%
Forsyth (City of) (Portland General Electric Co.); Series 1998 A, Ref. PCR		5.00	%		05/01/33		800		832,896
Nevada–4.06%
Clark (County of) (Las Vegas-McCarran International Airport); Series 2010 A, Passenger Facility Charge RB		5.13	%		07/01/34		500		507,415
Las Vegas (City of) Redevelopment Agency; Series 2009 A, Tax Increment Allocation RB		6.25	%		06/15/16		290		327,045
Las Vegas (City of) Valley Water District; Series 2003 A, Ref. & Water Improvement Limited Tax GO Bonds (INS–NATL)(a)		5.25	%		06/01/22		3,000		3,135,120
Nevada (State of) (Capital Improvements & Cultural Affairs); Series 2008 C, Limited Tax GO Bonds (INS–AGM)(a)(d)		5.00	%		06/01/26		1,600		1,721,664
									5,691,244
New Hampshire–0.22%
New Hampshire (State of) Business Finance Authority (United Illuminating Co.–Series 1997 A); Series 2009, PCR(b)(c)(e)		7.13	%		02/01/12		295		302,021
New Jersey–1.79%
New Jersey (State of) Economic Development Authority (Provident Group-Montclair Properties LLC–Montclair State University Student Housing); Series 2010 A, RB		5.75	%		06/01/31		440		441,153

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

8        Invesco Municipal Premium Income Trust

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
New Jersey–(continued)
Passaic Valley Sewerage Commissioners; Series 2003 F, Sewer System RB (INS–NATL)(a)		5.00	%		12/01/19	$	2,000	$	2,069,480
									2,510,633
New Mexico–0.78%
Farmington (City of) (Public Service Co. of New Mexico–San Juan);
Series 2010 A, Ref. PCR(b)(c)		5.20	%		06/01/20		500		510,605
Series 2010 C, Ref. PCR		5.90	%		06/01/40		600		576,306
									1,086,911
New York–27.68%
Brooklyn Arena Local Development Corp. (Barclays Center);
Series 2009, PILOT RB		6.25	%		07/15/40		380		386,825
Series 2009, PILOT RB		6.38	%		07/15/43		160		163,837
Long Island Power Authority; Series 2004 A, Electric System RB (INS–AMBAC)(a)		5.00	%		09/01/34		2,250		2,282,828
Metropolitan Transportation Authority; Series 2002 B, Service Contract RB (INS–NATL)(a)		5.50	%		07/01/20		3,000		3,106,860
New York (City of) Industrial Development Agency (7 World Trade Center, LLC); Series 2005 A, Liberty RB		6.25	%		03/01/15		2,000		2,007,840
New York (City of) Industrial Development Agency (Yankee Stadium); Series 2006, PILOT RB (INS–FGIC)(a)		5.00	%		03/01/46		1,035		964,423
New York (City of) Municipal Water Finance Authority; Series 2010 FF, Water & Sewer System Second General Resolution RB		5.00	%		06/15/31		2,100		2,248,575
New York (City of) Transitional Finance Authority;
Series 2009 A-1, Future Tax Sec. Sub. RB(d)		5.00	%		05/01/28		935		1,020,992
Series 2009 A-1, Future Tax Sec. Sub. RB(d)		5.00	%		05/01/29		745		808,839
Series 2009 A-1, Future Tax Sec. Sub. RB(d)		5.00	%		05/01/30		745		803,170
New York (City of) Trust for Cultural Resources (The Museum of Modern Art); Series 2008 One-A, Ref. RB(d)		5.00	%		04/01/28		2,850		3,089,086
New York (City of);
Series 2008 A-1, Unlimited Tax GO Bonds(d)		5.25	%		08/15/27		1,440		1,578,802
Series 2008 A-1, Unlimited Tax GO Bonds(d)		5.25	%		08/15/28		1,440		1,572,336
Series 2009 H-1, Unlimited Tax GO Bonds		5.00	%		03/01/16		1,500		1,754,505
New York (State of) Dormitory Authority (Cornell University); Series 2006 A, RB(d)		5.00	%		07/01/35		6,085		6,345,621
New York (State of) Dormitory Authority (Montefiore Medical Center); Series 2004, FHA Insured Mortgage Hospital RB (INS–NATL)(a)		5.00	%		08/01/29		1,995		2,113,343
New York (State of) Dormitory Authority (New York City); Series 2005 A, Court Facilities Lease RB (INS–AMBAC)(a)		5.50	%		05/15/29		505		579,881
New York (State of) Dormitory Authority (State University Educational Facilities); Series 2002 B, Third General Resolution RB (INS–CIFG)(a)(b)(c)		6.00	%		05/15/12		1,110		1,152,813
New York (State of) Dormitory Authority; Series 2011 A, State Personal Income Tax General Purpose RB		5.00	%		03/15/30		1,275		1,404,489
New York (State of) Thruway Authority;
Series 2009 A, Personal Income Tax RB		5.00	%		03/15/25		940		1,056,212
Series 2011 A-1, Second General Highway & Bridge Trust Fund RB		5.00	%		04/01/29		1,080		1,187,352
Triborough Bridge & Tunnel Authority; Series 2002 B, Ref. General RB		5.25	%		11/15/19		3,000		3,174,240
									38,802,869
North Carolina–0.93%
North Carolina (State of) Eastern Municipal Power Agency; Series 2009 B, Ref. Power System RB		5.00	%		01/01/26		1,215		1,302,674
Ohio–4.49%
American Municipal Power, Inc. (Prairie State Energy Campus); Series 2008 A, RB (INS–AGC)(a)(d)		5.25	%		02/15/33		2,400		2,527,968
Franklin (County of) (Ohio Health Corp.); Series 2011 A, Hospital Facilities RB		5.00	%		11/15/36		750		754,117
Hancock (County of) (Blanchard Valley Regional Health Center); Series 2011 A, Hospital Facilities RB		6.25	%		12/01/34		660		685,793
Lucas (County of) (ProMedica Healthcare Obligated Group); Series 2011 A, Hospital RB		5.75	%		11/15/31		1,000		1,065,890

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

9        Invesco Municipal Premium Income Trust

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Ohio–(continued)
Ohio (State of) Higher Educational Facility Commission (Summa Health System 2010); Series 2010, Hospital Facilities RB		5.75	%		11/15/40	$	1,065	$	1,044,222
Ohio (State of) Water Development Authority (FirstEnergy Nuclear Generation Corp.); Series 2009 A, Ref. PCR(b)(c)		5.88	%		06/01/16		190		213,628
									6,291,618
Oregon–0.64%
Oregon (State of) Department of Administrative Services; Series 2009 A, Lottery RB		5.25	%		04/01/24		315		362,974
Warm Springs (Reservation of) Confederated Tribes (Pelton Round Butte Tribal Economic Development); Series 2009 B, Hydroelectric RB(i)		6.38	%		11/01/33		535		540,634
									903,608
Pennsylvania–1.37%
Pennsylvania (State of) Turnpike Commission;
Series 2010 B-2, Sub. Conv. CAB RB(g)		0.00	%		12/01/28		650		538,928
Series 2010 B-2, Sub. Conv. CAB RB(g)		0.00	%		12/01/34		400		317,864
Philadelphia (City of) (1975 General Ordinance); Eighteenth Series 2004, Gas Works RB (INS–AGC)(a)		5.25	%		08/01/20		1,000		1,059,660
									1,916,452
Puerto Rico–2.81%
Puerto Rico (Commonwealth of) Electric Power Authority;
Series 2010 CCC, RB		5.25	%		07/01/27		1,000		1,020,110
Series 2010 XX, RB		5.25	%		07/01/40		600		583,884
Puerto Rico Sales Tax Financing Corp.;
First Series 2010 A, Sub. RB		5.38	%		08/01/39		575		580,008
First Series 2010 A, Sub. RB		5.50	%		08/01/42		650		659,367
First Series 2010 C, Sub. RB		5.25	%		08/01/41		1,100		1,094,192
									3,937,561
Rhode Island–2.15%
Rhode Island Economic Develpment Corp.; Series 2005 C, Ref. Airport RB (INS–NATL)(a)		5.00	%		07/01/28		3,000		3,014,340
South Carolina–2.43%
Charleston County School District; Series 2004 A, Unlimited Tax GO Bonds (CEP–South Carolina School District Enhancement Program)		5.00	%		02/01/22		3,000		3,239,700
Richland (County of); Series 2007 A, Ref. Environmental Improvement RB		4.60	%		09/01/12		165		169,617
									3,409,317
Tennessee–1.30%
Johnson City (City of) Health & Educational Facilities Board (Mountain States Health Alliance); Series 2006 A, Hospital First Mortgage RB		5.50	%		07/01/36		1,900		1,825,311
Texas–11.39%
Arlington (City of); Series 2009, Special Tax RB		5.00	%		08/15/28		1,000		1,043,900
Austin (City of); Series 2001, Ref. Water & Wastewater System RB (INS–AGM)(a)		5.13	%		05/15/27		1,475		1,476,740
Bexar County Health Facilities Development Corp. (Army Retirement Residence Foundation);
Series 2007, Ref. RB		5.00	%		07/01/33		735		674,576
Series 2007, Ref. RB		5.00	%		07/01/37		580		518,218
Harris County Industrial Development Corp. (Deer Park Refining Limited Partnership); Series 2006, Solid Waste Disposal RB		5.00	%		02/01/23		300		319,908

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

10        Invesco Municipal Premium Income Trust

						Principal
	Interest			Maturity		Amount
	Rate			Date		(000)		Value
Texas–(continued)
Houston (City of);
Series 2004 A, Ref. Combined Utility System First Lien RB (INS–NATL)(a)		5.25	%		05/15/23	$	2,320	$	2,528,777
Series 2011 D, Combined Utility System First Lien RB		5.00	%		11/15/31		885		953,508
Series 2011 D, Combined Utility System First Lien RB		5.00	%		11/15/33		1,400		1,490,300
Lower Colorado River Authority; Series 2010 A, Ref. RB		5.00	%		05/15/40		450		458,717
Matagorda (County of) Navigation District No. 1 (AEP Texas Central Co.); Series 2008, Ref. PCR(b)(c)		1.13	%		06/01/12		525		525,956
North Texas Tollway Authority;
Series 2008 D, Ref. First Tier System CAB RB (INS–AGC)(a)(g)		0.00	%		01/01/28		4,100		1,578,541
Series 2008 L-2, Ref. First Tier System RB(b)(c)		6.00	%		01/01/13		1,000		1,065,970
Tarrant County Cultural Education Facilities Finance Corp. (Air Force Village Obligated Group); Series 2007, Retirement Facility RB		5.13	%		05/15/37		425		363,702
Texas Private Activity Bond Surface Transportation Corp. (NTE Mobility Partners LLC–North Tarrant Express Managed Lanes); Series 2009, Sr. Lien RB		6.88	%		12/31/39		430		444,581
University of Houston System Board of Regents; Series 2008, Ref. Consolidated RB (INS–AGM)(a)(d)		5.00	%		02/15/33		2,400		2,519,304
									15,962,698
Virgin Islands–0.38%
Virgin Islands (Government of) Public Finance Authority (Virgin Islands Matching Fund Loan Note); Series 2010 A, Sr. Lien Working Capital RB		5.00	%		10/01/25		525		526,307
Washington–8.43%
Chelan (County of) Public Utility District No. 1; Series 2011 A, Ref. RB(e)		5.50	%		07/01/26		425		472,728
Goat Hill Properties (King County Governmental Office Building); Series 2005, Lease RB (INS–NATL)(a)		5.00	%		12/01/33		2,400		2,445,696
Grant (County of) Public Utility District No. 2; Series 2005 A, Ref. Wanapum Hydroelectric Development RB (INS–NATL)(a)		5.00	%		01/01/34		1,930		1,957,348
Washington (State of); Series 2004 F, Motor Vehicle Fuel Unlimited Tax CAB GO Bonds (INS–AMBAC)(a)(g)		0.00	%		12/01/29		2,120		917,854
Washington (State of) Health Care Facilities Authority (Seattle Cancer Care Alliance); Series 2008, RB		7.38	%		03/01/38		2,000		2,211,140
Washington (State of);
Series 2010 A, Various Purpose Unlimited Tax GO Bonds(d)		5.00	%		08/01/29		1,710		1,865,593
Series 2010 A, Various Purpose Unlimited Tax GO Bonds(d)		5.00	%		08/01/30		1,795		1,945,493
									11,815,852
TOTAL INVESTMENTS(j)–167.23% (Cost $225,865,533)									234,448,053
FLOATING RATE NOTE OBLIGATIONS–(21.46)%
Notes with interest rates ranging from 0.21% to 0.33% at 08/31/11 and contractual maturities of collateral ranging from 06/01/25 to 01/01/37 (See Note 1J)(k)									(30,080,000	)
OTHER ASSETS LESS LIABILITIES–2.38%									3,327,819
PREFERRED SHARES–(48.15)%									(67,500,000	)
NET ASSETS APPLICABLE TO COMMON SHARES–100.00%								$	140,195,872

Investment Abbreviations:

AGC	– Assured Guaranty Corp.
AGM	– Assured Guaranty Municipal Corp.
AMBAC	– American Municipal Bond Assurance Corp.
BAN	– Bond Anticipation Notes
BHAC	– Berkshire Hathaway Assurance Corp.
CAB	– Capital Appreciation Bonds
CEP	– Credit Enhancement Provider
CIFG	– CIFG Assurance North America, Inc.
Conv.	– Convertible
COP	– Certificates of Participation
FGIC	– Financial Guaranty Insurance Co.
FHA	– Federal Housing Administration
GO	– General Obligation
Gtd.	– Guaranteed
IDR	– Industrial Development Revenue Bonds
INS	– Insurer
NATL	– National Public Finance Guarantee Corp.
PCR	– Pollution Control Revenue Bonds
PILOT	– Payment-in-Lieu-of-Tax
RAB	– Revenue Anticipation Bonds
RB	– Revenue Bonds
Ref.	– Refunding
Sec.	– Secured
SGI	– Syncora Guarantee, Inc.
Sr.	– Senior
Sub.	– Subordinated

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

11        Invesco Municipal Premium Income Trust

Notes to Schedule of Investments:

(a)	Principal and/or interest payments are secured by the bond insurance company listed.
(b)	Security has an irrevocable call by the issuer or mandatory put by the holder. Maturity date reflects such call or put.
(c)	Interest or dividend rate is redetermined periodically. Rate shown is the rate in effect on August 31, 2011.
(d)	Underlying security related to Dealer Trusts entered into by the Trust. See Note 1J.
(e)	Security subject to the alternative minimum tax.
(f)	Advance refunded; secured by an escrow fund of U.S. Government obligations or other highly rated collateral.
(g)	Zero coupon bond issued at a discount.
(h)	Security is subject to a shortfall agreement which may require the Trust to pay amounts to a counterparty in the event of a significant decline in the market value of the security underlying the Dealer Trusts. In case of a shortfall, the maximum potential amount of payments the Trust could ultimately be required to make under the agreement is $3,350,000. However, such shortfall payment would be reduced by the proceeds from the sale of the security underlying the Dealer Trusts.
(i)	Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended. The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The value of this security at August 31, 2011 represented 0.39% of the Trust’s Net Assets.
(j)	This table provides a listing of those entities that have either issued, guaranteed, backed or otherwise enhanced the credit quality of more than 5% of the securities held in the portfolio. In instances where the entity has guaranteed, backed or otherwise enhanced the credit quality of a security, it is not primarily responsible for the issuer’s obligations but may be called upon to satisfy the issuer’s obligations.

Entities	Percentage
National Public Finance Guarantee Corp.		20.1	%
American Municipal Bond Assurance Corp.		6.3
Assured Guaranty Municipal Corp.		6.0

^(k) Floating rate note obligations related to securities held. The interest rates shown reflect the rates in effect at August 31, 2011. At August 31, 2011, the Trust’s investments with a value of $47,789,095 are held by Dealer Trusts and serve as collateral for the $30,080,000 in the floating rate note obligations outstanding at that date.

Portfolio Composition

By credit sector, based on Total Investments

as of August 31, 2011

Revenue Bonds	81.1	%
General Obligation Bonds	14.9
Pre-refunded Bonds	4.0

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

12        Invesco Municipal Premium Income Trust

Statement of Assets and Liabilities

August 31, 2011

(Unaudited)

Assets:
Investments, at value (Cost $225,865,533)	$	234,448,053
Cash		605,234
Receivable for:
Investments sold		922,875
Interest		2,697,656
Investment for trustee deferred compensation and retirement plans		2,464
Other assets		24,438
Total assets		238,700,720
Liabilities:
Floating rate note obligations		30,080,000
Payable for:
Investments purchased		672,076
Dividends declared on preferred shares		163
Accrued fees to affiliates		7
Accrued other operating expenses		186,144
Trustee deferred compensation and retirement plans		66,458
Total liabilities		31,004,848
Preferred shares ($0.01 par value, authorized 1,000,000 shares, 675 issued with liquidation preference of $100,000 per share)		67,500,000
Net assets attributable to common shares	$	140,195,872
Net assets applicable to common shares consist of:
Shares of beneficial interest — common shares	$	158,048,828
Undistributed net investment income		1,473,398
Undistributed net realized gain (loss)		(27,908,874	)
Unrealized appreciation		8,582,520
	$	140,195,872
Net assets:
Shares outstanding, $0.01 par value per common share with an unlimited number of shares authorized:
Outstanding		16,666,877
Net asset value per common share	$	8.41
Market value per common share	$	7.91

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

13        Invesco Municipal Premium Income Trust

Statement of Operations

For the six months ended August 31, 2011

(Unaudited)

Investment income:
Interest	$	5,538,265
Expenses:
Advisory fees		466,768
Administrative services fees		25,137
Custodian fees		5,355
Interest, facilities and maintenance fees		245,622
Transfer agent fees		5,194
Trustees’ and officers’ fees and benefits		46,136
Professional services fees		529,858
Other		21,081
Total expenses		1,345,151
Net investment income		4,193,114
Realized and unrealized gain (loss) from:
Net realized gain (loss) from investment securities		(2,871,565	)
Change in net unrealized appreciation of investment securities		12,889,693
Net realized and unrealized gain		10,018,128
Net increase in net assets resulting from operations		14,211,242
Distributions to preferred shareholders from net investment income		(34,061	)
Net increase in net assets from operations applicable to common shares	$	14,177,181

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

14        Invesco Municipal Premium Income Trust

Statement of Changes in Net Assets

For the six months ended August 31, 2011, the nine months ended February 28, 2011 and the year ended May 31, 2010

(Unaudited)

	Six months			Nine months
	ended			ended			Year ended
	August 31,			February 28,			May 31,
	2011			2011			2010
Operations:
Net investment income	$	4,193,114		$	6,610,141		$	9,278,489
Net realized gain (loss)		(2,871,565	)		(907,530	)		(1,856,135	)
Change in net unrealized appreciation (depreciation)		12,889,693			(9,325,439	)		14,019,645
Net increase (decrease) in net assets resulting from operations		14,211,242			(3,622,828	)		21,441,999
Distributions to preferred shareholders from net investment income		(34,061	)		(105,415	)		(122,989	)
Net increase (decrease) in net assets from operations applicable to common shares		14,177,181			(3,728,243	)		21,319,010
Dividends to common shareholders from net investment income		(4,500,058	)		(6,750,086	)		(9,000,115	)
Net increase (decrease) in net assets		9,677,123			(10,478,329	)		12,318,895
Net assets applicable to common shares:
Beginning of period		130,518,749			140,997,078			128,678,183
End of period (includes undistributed net investment income of $1,473,398, $1,814,403 and $2,063,645, respectively)	$	140,195,872		$	130,518,749		$	140,997,078

See accompanying Notes to Financial Statements which are an integral part of the financial statements.

15        Invesco Municipal Premium Income Trust

Statement of Cash Flows

For the six months ended August 31, 2011

(Unaudited)

Net increase (decrease) in net assets from operations applicable to common shares	$	14,177,181
Adjustments to reconcile the change in net assets applicable to common shares from operations to net cash provided by operating activities:
Net realized loss on investments		2,871,565
Net change in unrealized appreciation on investments		(12,889,693	)
Amortization of premium and accretion of discount		202,423
Cost of purchases of investments		(14,944,060	)
Proceeds from sales of investments		14,381,897
Increase in interest receivables and other assets		(55,962	)
Decrease in accrued expenses and other payables		(213,761	)
Net cash provided by operating activities		3,529,590
Cash flows provided by (used in) financing activities:
Dividends paid to common shareholders from net investment income		(4,502,318	)
Net proceeds from and repayments of floating rate note obligations		120,000
Net cash provided by (used in) financing activities		(4,382,318	)
Net increase (decrease) in cash		(852,728	)
Cash at beginning of period		1,457,962
Cash at end of period	$	605,234
Supplemental disclosure of cash flow information:
Cash paid during the period for interest, facilities and maintenance fees	$	131,393

Notes to Financial Statements

August 31, 2011

(Unaudited)

NOTE 1—Significant Accounting Policies

Invesco Municipal Premium Income Trust (the “Trust”), a Massachusetts business trust, is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, closed-end series management investment company.

  The Trust’s investment objective is to seek to provide a high level of current income exempt from federal income tax.

  The following is a summary of the significant accounting policies followed by the Trust in the preparation of its financial statements.

A.	Security Valuations — Securities, including restricted securities, are valued according to the following policy.
	Securities are fair valued using an evaluated quote provided by an independent pricing service approved by the Board of Trustees. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices and may reflect appropriate factors such as institution-size trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Securities with a demand feature exercisable within one to seven days are valued at par. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and principal payments.
	Securities for which market quotations either are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust’s officers following procedures approved by the Board of Trustees. Some of the factors which may be considered in determining fair value are fundamental analytical data relating to the investment; the nature and duration of any restrictions on transferability or disposition; trading in similar securities by the same issuer or comparable companies; relevant political, economic or issuer specific news; and other relevant factors under the circumstances.
	Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

16        Invesco Municipal Premium Income Trust

B.	Securities Transactions and Investment Income — Securities transactions are accounted for on a trade date basis. Realized gains or losses on sales are computed on the basis of specific identification of the securities sold. Interest income is recorded on the accrual basis from settlement date. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Bond premiums and discounts are amortized and/or accreted for financial reporting purposes.
	The Trust may periodically participate in litigation related to Trust investments. As such, the Trust may receive proceeds from litigation settlements. Any proceeds received are included in the Statement of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
	Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statement of Operations and the Statement of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of the Trust’s net asset value and, accordingly, they reduce the Trust’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statement of Operations and Statement of Changes in Net Assets, or the net investment income per share and ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between the Trust and the investment adviser.
C.	Country Determination — For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the investment adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
D.	Distributions — The Trust declares and pays monthly dividends from net investment income to common shareholders. Distributions from net realized capital gain, if any, are generally paid annually and are distributed on a pro rata basis to common and preferred shareholders. The Trust may elect to treat a portion of the proceeds from redemptions as distributions for federal income tax purposes.
E.	Federal Income Taxes — The Trust intends to comply with the requirements of Subchapter M of the Internal Revenue Code necessary to qualify as a regulated investment company and to distribute substantially all of the Trust’s taxable earnings to shareholders. As such, the Trust will not be subject to federal income taxes on otherwise taxable income (including net realized capital gain) that is distributed to shareholders. Therefore, no provision for federal income taxes is recorded in the financial statements.
	In addition, the Trust intends to invest in such municipal securities to allow it to qualify to pay shareholders “exempt dividends”, as defined in the Internal Revenue Code.
	The Trust files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Trust is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
	The Trust files tax returns in the U.S. Federal jurisdiction and certain other jurisdictions. Generally, the Trust is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
F.	Interest, Facilities and Maintenance Fees — Interest, Facilities and Maintenance Fees include interest and related borrowing costs such as commitment fees and other expenses associated with lines of credit and interest and administrative expenses related to establishing and maintaining Auction Rate Preferred Shares and floating rate obligations, if any.
G.	Accounting Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period including estimates and assumptions related to taxation. Actual results could differ from those estimates by a significant amount. In addition, the Trust monitors for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
H.	Indemnifications — Under the Trust’s organizational documents, each Trustee, officer, employee or other agent of the Trust is indemnified against certain liabilities that may arise out of performance of their duties to the Trust. Additionally, in the normal course of business, the Trust enters into contracts, including the Trust’s servicing agreements that contain a variety of indemnification clauses. The Trust’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. The risk of material loss as a result of such indemnification claims is considered remote.
I.	Cash and Cash Equivalents — For the purposes of the Statement of Cash Flows the Trust defines Cash and Cash Equivalents as cash (including foreign currency), money market funds and other investments held in lieu of cash and excludes investments made with cash collateral received.
J.	Floating Rate Note Obligations — The Trust invests in inverse floating rate securities, such as Residual Interest Bonds (“RIBs”) or Tender Option Bonds (“TOBs”) for investment purposes and to enhance the yield of the Trust. Inverse floating rate investments tend to underperform the market for fixed rate bonds in a rising interest rate environment, but tend to outperform the market for fixed rate bonds when interest rates decline or remain relatively stable. Such transactions may be purchased in the secondary market without first owning the underlying bond or by the sale of fixed rate bonds by the Trust to special purpose trusts established by a broker dealer (“Dealer Trusts”) in exchange for cash and residual interests in the Dealer Trusts’ assets and cash flows, which are in the form of inverse floating rate securities. The Dealer Trusts finance the purchases of the fixed rate bonds by issuing floating rate notes to third parties and allowing the Trust to retain residual interest in the bonds. The floating rate notes issued by the Dealer Trusts have interest rates that reset weekly and the floating rate note holders have the option to tender their notes to the Dealer Trusts for redemption at par at each reset date. The residual interests held by the Trust (inverse floating rate investments) include the right of the Trust (1) to cause the holders of the floating

17        Invesco Municipal Premium Income Trust

	rate notes to tender their notes at par at the next interest rate reset date, and (2) to transfer the municipal bond from the Dealer Trusts to the Trust, thereby collapsing the Dealer Trusts.
	TOBs are presently classified as private placement securities. Private placement securities are subject to restrictions on resale because they have not been registered under the Securities Act of 1933, as amended or are otherwise not readily marketable. As a result of the absence of a public trading market for these securities, they may be less liquid than publicly traded securities. Although these securities may be resold in privately negotiated transactions, the prices realized from these sales could be less than those originally paid by the Trust or less than what may be considered the fair value of such securities.
	The Trust accounts for the transfer of bonds to the Dealer Trusts as secured borrowings, with the securities transferred remaining in the Trust’s investment assets, and the related floating rate notes reflected as Trust liabilities under the caption Floating rate note obligations on the Statement of Assets and Liabilities. The Trust records the interest income from the fixed rate bonds under the caption Interest and records the expenses related to floating rate obligations and any administrative expenses of the Dealer Trusts as a component of Interest, facilities and maintenance fees on the Statement of Operations.
	The Trust generally invests in inverse floating rate securities that include embedded leverage, thus exposing the Trust to greater risks and increased costs. The primary risks associated with inverse floating rate securities are varying degrees of liquidity and the changes in the value of such securities in response to changes in market rates of interest to a greater extent than the value of an equal principal amount of a fixed rate security having similar credit quality, redemption provisions and maturity which may cause the Trust’s net asset value to be more volatile than if it had not invested in inverse floating rate securities. In certain instances, the short-term floating rate interests created by the special purpose trust may not be able to be sold to third parties or, in the case of holders tendering (or putting) such interests for repayment of principal, may not be able to be remarketed to third parties. In such cases, the special purpose trust holding the long-term fixed rate bonds may be collapsed. In the case of RIBs or TOBs created by the contribution of long-term fixed income bonds by the Trust, the Trust will then be required to repay the principal amount of the tendered securities. During times of market volatility, illiquidity or uncertainty, the Trust could be required to sell other portfolio holdings at a disadvantageous time to raise cash to meet that obligation.
K.	Futures Contracts — The Trust may enter into futures contracts to manage exposure to interest rate, equity and market price movements and/or currency risks. A futures contract is an agreement between two parties to purchase or sell a specified underlying security, currency or commodity (or delivery of a cash settlement price, in the case of an index future) for a fixed price at a future date. The Trust currently invests only in exchange-traded futures and they are standardized as to maturity date and underlying financial instrument. Initial margin deposits required upon entering into futures contracts are satisfied by the segregation of specific securities or cash as collateral at the futures commission merchant (broker). During the period the futures contracts are open, changes in the value of the contracts are recognized as unrealized gains or losses by recalculating the value of the contracts on a daily basis. Subsequent or variation margin payments are received or made depending upon whether unrealized gains or losses are incurred. These amounts are reflected as receivables or payables on the Statement of Assets and Liabilities. When the contracts are closed or expire, the Trust recognizes a realized gain or loss equal to the difference between the proceeds from, or cost of, the closing transaction and the Trust’s basis in the contract. The net realized gain (loss) and the change in unrealized gain (loss) on futures contracts held during the period is included on the Statement of Operations. The primary risks associated with futures contracts are market risk and the absence of a liquid secondary market. If the Trust were unable to liquidate a futures contract and/or enter into an offsetting closing transaction, the Trust would continue to be subject to market risk with respect to the value of the contracts and continue to be required to maintain the margin deposits on the futures contracts. Futures contracts have minimal counterparty risk since the exchange’s clearinghouse, as counterparty to all exchange-traded futures, guarantees the futures against default. Risks may exceed amounts recognized in the Statement of Assets and Liabilities.
L.	Other Risks — The value of, payment of interest on, repayment of principal for and the ability to sell a municipal security may be affected by constitutional amendments, legislative enactments, executive orders, administrative regulations, voter initiatives and the economics of the regions in which the issuers are located.
	Since, many municipal securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal securities market and a Trust’s investments in municipal securities.
	There is some risk that a portion or all of the interest received from certain tax-free municipal securities could become taxable as a result of determinations by the Internal Revenue Service.

NOTE 2—Advisory Fees and Other Fees Paid to Affiliates

Effective June 1, 2010, the Trust has entered into a master investment advisory agreement with Invesco Advisers, Inc. (the “Adviser” or “Invesco”). Under the terms of the investment advisory agreement, the Trust pays an advisory fee to the Adviser based on the annual rate 0.40% of the Trust’s average weekly net assets including current preferred shares and a portion of floating rate and dealer trust obligations that the Trust entered into to retire outstanding preferred shares of the Trust.

  Under the terms of a master sub-advisory agreement between the Adviser and each of Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the “Affiliated Sub-Advisers”) the Adviser, not the Trust, may pay 40% of the fees paid to the Adviser to any such Affiliated Sub-Adviser(s) that provide(s) discretionary investment management services to the Trust based on the percentage of assets allocated to such Sub-Adviser(s).

  Effective June 1, 2010, the Adviser has contractually agreed, through at least June 30, 2012, to waive advisory fees and/or reimburse expenses to the extent necessary to limit the Trust’s expenses (excluding certain items discussed below) to 1.03%. In determining the Adviser’s obligation to waive advisory fees and/or reimburse expenses, the following expenses are not taken into account, and could cause the Trust’s expenses to exceed the limit reflected above: (1) interest, facilities and maintenance fees; (2) taxes; (3) dividend expense on short sales; (4) extraordinary or non-routine items; and (5) expenses that the Trust has incurred but did not actually pay because of an expense offset arrangement. Unless the Board of Trustees and Invesco mutually agree to amend or continue the

18        Invesco Municipal Premium Income Trust

fee waiver agreement, it will terminate on June 30, 2012. The Adviser did not waive fees and/or reimburse expenses during the period under this expense limitation.

  The Trust has entered into a master administrative services agreement with Invesco pursuant to which the Trust has agreed to pay Invesco for certain administrative costs incurred in providing accounting services to the Trust. For the six months ended August 31, 2011, expenses incurred under these agreements are shown in the Statement of Operations as administrative services fees. Also, Invesco has entered into service agreements whereby State Street Bank and Trust Company (“SSB”) serves as the custodian and fund accountant and provides certain administrative services to the Trust. Also, Invesco has entered into service agreements whereby State Street Bank and Trust Company (“SSB”) serves as the custodian, fund accountant and provides certain administrative services to the Trust.

  Certain officers and trustees of the Trust are officers and directors of Invesco.

NOTE 3—Additional Valuation Information

GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment’s assigned level:

Level 1 —	Prices are determined using quoted prices in an active market for identical assets.
Level 2 —	Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, yield curves, loss severities, default rates, discount rates, volatilities and others.
Level 3 —	Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Trust’s own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.

  The following is a summary of the tiered valuation input levels, as of August 31, 2011. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.

  During the six months ended August 31, 2011, there were no significant transfers between investment levels.

	Level 1		Level 2		Level 3		Total
Municipal Obligations	$	—	$	234,448,053	$	—	$	234,448,053

NOTE 4—Trustees’ and Officers’ Fees and Benefits

“Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Trust to pay remuneration to certain Trustees and Officers of the Trust. Trustees have the option to defer compensation payable by the Trust, and “Trustees’ and Officers’ Fees and Benefits” also include amounts accrued by the Trust to fund such deferred compensation amounts. Those Trustees who defer compensation have the option to select various Invesco Trusts in which their deferral accounts shall be deemed to be invested. Finally, certain current Trustees are eligible to participate in a retirement plan that provides for benefits to be paid upon retirement to Trustees over a period of time based on the number of years of service. The Trust may have certain former Trustees who also participate in a retirement plan and receive benefits under such plan. “Trustees’ and Officers’ Fees and Benefits” include amounts accrued by the Trust to fund such retirement benefits. Obligations under the deferred compensation and retirement plans represent unsecured claims against the general assets of the Trust.

  During the six months ended August 31, 2011, the Trust paid legal fees of $5,835 for services rendered by Kramer, Levin, Naftalis & Frankel LLP as counsel to the Independent Trustees. A partner of that firm is a Trustee of the Trust.

NOTE 5—Cash Balances and Borrowings

The Trust is permitted to temporarily carry a negative or overdrawn balance in its account with SSB, the custodian bank. To compensate the custodian bank for such overdrafts, the overdrawn Trust may either (1) leave funds as a compensating balance in the account so the custodian bank can be compensated by earning the additional interest; or (2) compensate by paying the custodian bank at a rate agreed upon by the custodian bank and Invesco, not to exceed the contractually agreed upon rate.

  Inverse floating rate obligations resulting from the transfer of bonds to Dealer Trusts are accounted for as secured borrowings. The average floating rate notes outstanding and average annual interest and fees related to inverse floating rate note obligations during the six months ended August 31, 2011 were $30,164,000 and 0.87%, respectively.

NOTE 6—Tax Information

The amount and character of income and gains to be distributed are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Reclassifications are made to the Trust’s capital accounts to reflect income and gains available for distribution (or available capital loss carryforward) under income tax regulations. The tax character of distributions paid during the year and the tax components of net assets will be reported at the Trust’s fiscal year-end.

19        Invesco Municipal Premium Income Trust

  Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Trust to utilize. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.

  The Trust had a capital loss carryforward as of February 28, 2011 which expires as follows:

	Capital Loss
Expiration	Carryforward*
February 28, 2016	$	841,832
February 28, 2017		4,084,160
February 28, 2018		19,280,398
February 28, 2019		285,357
Total capital loss carryforward	$	24,491,747

*  Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.

NOTE 7—Investment Securities

The aggregate amount of investment securities (other than short-term securities, U.S. Treasury obligations and money market funds, if any) purchased and sold by the Trust during the six months ended August 31, 2011 was $20,995,524 and $15,222,539, respectively. Cost of investments on a tax basis includes the adjustments for financial reporting purposes as of the most recently completed Federal income tax reporting period-end.

Unrealized Appreciation (Depreciation) of Investment Securities on a Tax Basis
Aggregate unrealized appreciation of investment securities	$	10,638,422
Aggregate unrealized (depreciation) of investment securities		(1,913,683	)
Net unrealized appreciation of investment securities	$	8,724,739
Cost of investments for tax purposes is $225,723,314.

NOTE 8—Preferred Shares of Beneficial Interest

The Trust has issued Auction Rate Preferred Shares (“preferred shares”) which have a liquidation value of $100,000 per share plus the redemption premium, if any, plus accumulated but unpaid dividends, whether or not declared, thereon to the date of distribution. The Trust may redeem such shares, in whole or in part, at the original purchase price of $100,000 per share plus accumulated but unpaid dividends, whether or not declared, thereon to the date of redemption.

  Historically, the Trust paid annual fees equivalent to 0.25% of the preferred share liquidation value for the remarketing efforts associated with the preferred auction. Effective March 31, 2009, the Trust decreased this amount to 0.15% due to auction failures. In the future, if auctions no longer fail, the Trust may return to an annual fee payment of 0.25% of the preferred share liquidation value. These fees are included as a component of “Preferred share maintenance” expense on the Statement of Operations.

  Dividends, which are cumulative, are reset through auction procedures.

			Amount							Range of
Series	Shares†		(000’s omitted)††		Rate†			Reset Date		Dividend Rates††
A		135	$	13,500		0.088	%		09/06/2011		0.033-0.198	%
B		135		13,500		0.088			09/06/2011		0.033-0.198
C		135		13,500		0.088			09/06/2011		0.033-0.198
D		135		13,500		0.088			09/06/2011		0.033-0.198
E		135		13,500		0.088			09/06/2011		0.033-0.198

†	As of August 31, 2011.
††	For the six months ended August 31, 2011.

  Subsequent to August 31, 2011 and up through October 01, 2011, the Trust paid dividends to preferred shareholders at rates ranging from 0.033% to 0.099% in the aggregate amount of $3,848.

  The Trust is subject to certain restrictions relating to the preferred shares. Failure to comply with these restrictions could preclude the Trust from declaring any distributions to common shareholders or purchasing common shares and/or could trigger the mandatory redemption of preferred shares at liquidation value.

  Beginning February 15, 2008 and continuing through November 30, 2010, all series of preferred shares of the Trust were not successfully remarketed. As a result, the dividend rates of these preferred shares were reset to the maximum applicable rate.

  The preferred shares, which are entitled to one vote per share, generally vote with the common shares but vote separately as a class to elect two Trustees and on any matters affecting the rights of the preferred shares.

  The preferred shares are not listed on an exchange. Investors in preferred shares may participate in auctions through authorized broker-dealers; however, such broker-dealers are not required to maintain a secondary market in preferred shares, and there can be no assurance that a secondary market will develop, or if it does develop, a secondary market may not provide you with liquidity. When a preferred share auction fails, investors may not be able to sell any or all of their

20        Invesco Municipal Premium Income Trust

preferred shares and because of the nature of the market for preferred shares, investors may receive less than the price paid for their preferred shares if sold outside of the auction.

  The Trust entered into additional floating rate note and dealer trust obligations as an alternative form of leverage in order to redeem and to retire a portion of its preferred shares. Transactions in preferred shares were as follows:

	Shares		Value
Outstanding at February 28, 2011		675	$	67,500,000
Shares retired		—		—
Outstanding at August 31, 2011		675	$	67,500,000

NOTE 9—Common Shares of Beneficial Interest

Transactions in common shares of beneficial interest were as follows:

	August 31, 2011		February 28, 2011		May 31, 2010
Beginning shares		16,666,877		16,666,877		16,666,877
Shares issued through dividend reinvestment		—		—		—
Ending shares		16,666,877		16,666,877		16,666,877

  The Trustees have approved share repurchases whereby the Trust may, when appropriate, purchase shares in the open market or in privately negotiated transactions at a price not above market value or net asset value, whichever is lower at the time of purchase.

NOTE 10—Dividends

The Trust declared the following dividends to common shareholders from net investment income subsequent to August 31, 2011:

Declaration Date	Amount Per Share		Record Date		Payable Date
September 1, 2011	$	0.045		September 15, 2011		September 30, 2011
September 30, 2011		0.045		October 14, 2011		October 31, 2011

21        Invesco Municipal Premium Income Trust

NOTE 11—Financial Highlights

The following schedule presents financial highlights for a share of the Trust outstanding throughout the periods indicated.

	Six months			Nine months
	ended			ended
	August 31,			February 28,			Year ended May 31,
	2011			2011			2010			2009			2008			2007
Net asset value per common share, beginning of period	$	7.83		$	8.46		$	7.72		$	9.26		$	10.05		$	10.13
Net investment income(a)		0.25			0.40			0.56			0.62			0.67			0.66
Net gains (losses) on securities (both realized and unrealized)		0.60			(0.62	)		0.73			(1.60	)		(0.78	)		0.08
Distributions paid to preferred shareholders from net investment income		(0.00	)		(0.01	)		(0.01	)		(0.06	)		(0.20	)		(0.20	)
Total income (loss) from investment operations		0.85			(0.23	)		1.28			(1.04	)		(0.31	)		0.54
Less distributions to common shareholders from:
Dividends from net investment income		(0.27	)		(0.40	)		(0.54	)		(0.50	)		(0.46	)		(0.50	)
Distributions from net realized gains		—			—			—			(0.00	)		(0.04	)		(0.14	)
Total distributions to common shareholders		(0.27	)		(0.40	)		(0.54	)		(0.50	)		(0.50	)		(0.64	)
Anti-dilutive effect of shares repurchased(a)		—			—			—			0.00	(b)		0.02			0.02
Net asset value per common share, end of period	$	8.41		$	7.83		$	8.46		$	7.72		$	9.26		$	10.05
Market value, end of period	$	7.91		$	7.53		$	8.06		$	7.36		$	8.34		$	9.49
Net asset value, total return(c)		11.54	%		(2.73	)%		17.42	%
Total return at market value(c)		8.84	%		(1.82	)%		17.34	%		(4.91	)%		(6.86	)%		11.22	%
Net assets applicable to common shares, end of period (000’s omitted)	$	140,196		$	130,519		$	140,997		$	128,678		$	154,430		$	171,138
Portfolio turnover rate(d)		7	%		5	%		12	%		17	%		5	%		13	%
Ratios/supplemental data based on average net assets applicable to common shares:
Ratio of expenses(e)		1.99	%(g)		1.66	%(h)		1.35	%		1.78	%(i)		1.58	%(i)		1.41	%(i)
Ratio of expenses excluding interest, facilities and maintenance fees(e)(f)		1.63	%(g)		1.37	%(h)		1.12	%		1.23	%(i)		1.12	%(i)		1.07	%(i)
Ratio of net investment income before preferred share dividends		4.13	%(g)		6.38	%(h)		6.86	%		7.96	%(i)		7.05	%(i)		6.50	%(i)
Preferred share dividends		0.03	%(g)		0.10	%(h)		0.09	%		0.79	%		2.11	%		2.00	%
Ratio of net investment income after preferred share dividends		4.10	%(g)		6.28	%(h)
Rebate from Morgan Stanley affiliate		—	%		—	%		—	%		0.00	%(j)		0.00	%(j)		0.00	%(j)
Senior securities:
Total amount of preferred shares outstanding (000’s omitted)	$	67,500		$	67,500
Asset coverage per preferred share(k)	$	307,698		$	293,361			309	%		268	%		254	%		271	%
Liquidating preference per preferred share	$	100,000		$	100,000

(a)	Calculated using average number of common shares outstanding.
(b)	Amount is less than $0.005.
(c)	Net asset value return includes adjustments in accordance with accounting principles generally accepted in the United States of America and measures the change in common share’s value over the period indicated, taking into account dividends are reinvested. Market value total return is computed based on the New York Stock Exchange market price of the Trust’s common shares and excludes the effects of brokerage commissions. Dividends and distributions, if any, are assumed, for purposes of this calculation, to be reinvested at prices obtained under the Trust’s dividend reinvestment plan.
(d)	Portfolio turnover is not annualized for periods less than one year, if applicable.
(e)	Ratios do not reflect the effect of dividend payments to preferred shareholders.
(f)	For the years ended October 31, 2010 and prior, ratio does not exclude facilities and maintenance fees.
(g)	Ratios are annualized and based on average daily net assets applicable to common shares (000’s omitted) of $202,195,048.
(h)	Annualized.
(i)	The ratios reflect the rebate of certain Trust expenses in connection with investments in an affiliate during the period. The effect of the rebate on the ratios is disclosed in the above table as “Rebate from Morgan Stanley affiliate”.
(j)	Amount is less than 0.005%.
(k)	Calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets and dividing this by the number of preferred shares outstanding. For periods prior to February 28, 2011, calculated by subtracting the Trust’s total liabilities (not including the preferred shares) from the Trust’s total assets and dividing by preferred shares at liquidation value.

22        Invesco Municipal Premium Income Trust

NOTE 12—Legal Proceedings

Terms used in the Legal Proceedings Note are defined terms solely for the purpose of this note.

Pending Litigation and Regulatory Inquiries

On January 17, 2011, a Consolidated Amended Shareholder Derivative Complaint entitled Curbow Family, LLC, et al. v. Morgan Stanley Investment Advisors, Inc., was filed on behalf of Invesco Insured Municipal Income Trust and Invesco Municipal Premium Income Trust (the “Trusts”) against Morgan Stanley Investment Advisors, Inc., Morgan Stanley and certain current and former executive officers of the Trusts (collectively, the “Defendants”) alleging that they breached their fiduciary duties to common shareholders by causing the Trusts to redeem Auction Rate Preferred Securities (“ARPS”) at their liquidation value. Specifically, the shareholders claim that the board and officers had no obligation to provide liquidity to the ARPS shareholders, the redemptions were improperly motivated to benefit the prior adviser by preserving business relationships with the ARPS holders, i.e., institutional investors, and the market value and fair value of the ARPS were less than par at the time they were redeemed. The Complaint alleges that the redemption of the ARPS occurred at the expense of the Trusts and their common shareholders. This Complaint amends and consolidates two separate complaints that were filed by Curbow Family LLC and Elsie Mae Melms Revocable Living Trust on July 22, 2010 and August 3, 2010, respectively. Each of the Trusts initially received a demand letter from the plaintiffs on April 8, 2010. Plaintiffs seek judgment that: 1) orders Defendants to refrain from redeeming any ARPS at their liquidation value using Trusts assets; 2) awards monetary damages against all Defendants, individually, jointly or severally, in favor of the Trusts, for all losses and damages allegedly suffered as a result of the redemptions of ARPS at their liquidation value; 3) grants appropriate equitable relief to remedy the Defendants’ breaches of fiduciary duties; and 4) awards to Plaintiffs the costs and disbursements of the action. The Board formed a Special Litigation Committee (“SLC”) to investigate these claims and to make a recommendation to the Board regarding whether pursuit of these claims is in the best interests of the Trusts. After reviewing the findings of the SLC, the Board announced on July 12, 2011, that it had adopted the SLC’s recommendation to seek dismissal of the action. On October 4, 2011, Invesco filed a motion to dismiss. This matter is pending. The Trust has incurred $495,031 in expenses relating to these matters during the period ended August 31, 2011.

  Management of Invesco and the Trust believe that the outcome of the proceedings described above will have no material adverse effect on the Trust or on the ability of Invesco to provide ongoing services to the Trust.

23        Invesco Municipal Premium Income Trust

Approval of Investment Advisory and Sub-Advisory Contracts

The Board of Trustees (the Board) of Invesco Municipal Premium Income Trust is required under the Investment Company Act of 1940, as amended, to approve annually the renewal of the Invesco Municipal Premium Income Trust (the Fund) investment advisory agreement with Invesco Advisers, Inc. (Invesco Advisers) and the Master Intergroup Sub-Advisory Contract for Mutual Funds (the sub-advisory contracts) with Invesco Asset Management Deutschland GmbH, Invesco Asset Management Limited, Invesco Asset Management (Japan) Limited, Invesco Australia Limited, Invesco Hong Kong Limited, Invesco Senior Secured Management, Inc. and Invesco Canada Ltd. (collectively, the Affiliated Sub-Advisers). During contract renewal meetings held on June 14-15, 2011, the Board as a whole, and the disinterested or “independent” Trustees, who comprise 80% of the Board, voting separately, approved the continuance of the Fund’s investment advisory agreement and the sub-advisory contracts for another year, effective July 1, 2011. In doing so, the Board considered the process that it follows in reviewing and approving the Fund’s investment advisory agreement and sub-advisory contracts and the information that it is provided. The Board determined that the Fund’s investment advisory agreement and the sub-advisory contracts are in the best interests of the Fund and its shareholders and the compensation to Invesco Advisers and the Affiliated Sub-Advisers under the agreements is fair and reasonable.

The Board’s Fund Evaluation Process

The Board’s Investments Committee has established three Sub-Committees, each of which is responsible for overseeing the management of a number of the closed-end funds and all of the open-end funds advised by Invesco Advisers (the Invesco Funds). The Sub-Committees meet throughout the year to review the performance of their assigned funds, including reviewing materials prepared under the direction of the independent Senior Officer, an officer of the Invesco Funds who reports directly to the independent Trustees. Over the course of each year, the Sub-Committees meet with portfolio managers for their assigned Invesco Funds and other members of management to review the performance, investment objective(s), policies, strategies, limitations and investment risks of these funds. The Sub-Committees meet regularly and at designated contract renewal meetings each year to conduct a review of the performance, fees, expenses and other matters related to their assigned Invesco Funds. Each Sub-Committee recommends to the Investments Committee, which in turn recommends to the full Board, whether to approve the continuance of each Invesco Fund’s investment advisory agreement and sub-advisory contracts for another year.

  During the contract renewal process, the Trustees receive comparative performance and fee data regarding the Invesco Funds prepared by Invesco Advisers and an independent company, Lipper, Inc. (Lipper). The Trustees also receive an independent written evaluation from the Senior Officer. The Senior Officer’s evaluation is prepared as part of his responsibility to manage the process by which the Invesco Funds’ proposed management fees are negotiated during the annual contract renewal process to ensure they are negotiated in a manner that is at arms’ length and reasonable. The independent Trustees are assisted in their annual evaluation of the Fund’s investment advisory agreement by the Senior Officer and by independent legal counsel. The independent Trustees also discuss the continuance of the investment advisory agreement and sub-advisory contracts in private sessions with the Senior Officer and counsel.

  In evaluating the fairness and reasonableness of the Fund’s investment advisory agreement and sub-advisory contracts, the Board considered, among other things, the factors discussed below. The Trustees recognized that the advisory fees for the Invesco Funds include advisory fees that are the result of years of review and negotiation between the Trustees and Invesco Advisers as well as advisory fees inherited from Morgan Stanley and Van Kampen funds following the acquisition of the retail mutual fund business of Morgan Stanley (the Morgan Stanley Transaction). The Trustees’ deliberations and conclusions in a particular year may be based in part on their deliberations and conclusions regarding these same arrangements throughout the year and in prior years. One Trustee may have weighed a particular piece of information differently than another Trustee.

  The discussion below serves as the Senior Officer’s independent written evaluation with respect to the Fund’s investment advisory agreement as well as a discussion of the material factors and related conclusions that formed the basis for the Board’s approval of the Fund’s investment advisory agreement and sub-advisory contracts. Unless otherwise stated, this information is current as of June 15, 2011, and may not reflect consideration of factors that became known to the Board after that date, including, for example, changes to the Fund’s performance, advisory fees, expense limitations and/or fee waivers.

Factors and Conclusions and Summary of Independent Written Fee Evaluation

A.  Nature, Extent and Quality of Services Provided by Invesco Advisers and the Affiliated Sub-Advisers

The Board reviewed the advisory services provided to the Fund by Invesco Advisers under the Fund’s investment advisory agreement, the performance of Invesco Advisers in providing these services, and the credentials and experience of the officers and employees of Invesco Advisers who provide these services, including the Fund’s portfolio manager or managers, with whom the Board has met since the closing of the Morgan Stanley Transaction. The Board’s review of the qualifications of Invesco Advisers to provide advisory services included the Board’s consideration of Invesco Advisers’ performance and investment process oversight, independent credit analysis and investment risk management.

  In determining whether to continue the Fund’s investment advisory agreement, the Board considered the prior relationship between Invesco Advisers and the Fund, as well as the Board’s knowledge of Invesco Advisers’ operations, and concluded that it is beneficial to maintain the current relationship, in part, because of such knowledge. The Board also considered services that Invesco Advisers and its affiliates provide to the Invesco Funds such as various back office support functions, equity and fixed income trading operations, internal audit, and legal and compliance. The Board concluded that the nature, extent and quality of the services provided to the Fund by Invesco Advisers are appropriate and satisfactory and the advisory services are provided in accordance with the terms of the Fund’s investment advisory agreement.

  The Board reviewed the services provided by the Affiliated Sub-Advisers under the sub-advisory contracts and the credentials and experience of the officers and employees of the Affiliated Sub-Advisers who provide these services. The Board concluded that the sub-advisory contracts benefit the Fund and its shareholders by permitting Invesco Advisers to use the resources and talents of the Affiliated Sub-Advisers in managing the Fund. The Board concluded that the nature, extent and quality of the services provided by the Affiliated Sub-Advisers are appropriate and satisfactory and in accordance with the terms of the Fund’s sub-advisory contracts.

B.  Fund Performance

The Board considered Fund performance as a relevant factor in considering whether to approve the investment advisory agreement. The Board did

24        Invesco Municipal Premium Income Trust

not view Fund performance as a relevant factor in considering whether to approve the sub-advisory contracts for the Fund, as no Affiliated Sub-Adviser currently manages assets of the Fund.

  The Board compared the Fund’s performance during the past one, three and five calendar years to the performance of funds in the Lipper performance universe and against the Lipper Closed-End — General Municipal Debt Funds (Leveraged) Index. The Board noted that the Fund’s performance was in the third quintile of its performance universe for the one year period and the fifth quintile for the three and five year periods (the first quintile being the best performing funds and the fifth quintile being the worst performing funds). The Board noted that the Fund’s performance was below the performance of the Index for the one, three and five year periods. Although the independent written evaluation of the Fund’s Senior Officer only considered Fund performance through the most recent calendar year, the Trustees also reviewed more recent Fund performance and this review did not change their conclusions.

C.  Advisory and Sub-Advisory Fees and Fee Waivers

The Board compared the Fund’s contractual advisory fee rate to the contractual advisory fee rates of funds in the Fund’s Lipper expense group at a common asset level. The Board noted that the Fund’s contractual advisory fee rate was below the median contractual advisory fee rate of funds in its expense group. The Board also reviewed the methodology used by Lipper in providing expense group information, which includes using audited financial data from the most recent annual report of each fund in the expense group that was publicly available as of the end of the past calendar year and including only one fund per investment adviser. The Board noted that comparative data is as of varying dates, which may affect the comparability of data during times of market volatility.

  The Board also compared the Fund’s effective fee rate (the advisory fee after advisory fee waivers and before expense limitations/waivers) to the advisory fee rates of other mutual funds advised by Invesco Advisers and its affiliates with investment strategies comparable to those of the Fund. The Board noted that the Fund’s rate was below the rates of five closed-end funds and above the rate of three closed-end funds with comparable investment strategies.

  Other than the mutual funds described above, the Board noted that Invesco Advisers and the Affiliated Sub-Advisers do not manage other mutual funds or client accounts in a manner substantially similar to the management of the Fund.

  The Board noted that as part of the Morgan Stanley Transaction, Invesco Advisers has contractually agreed to waive fees and/or limit expenses of the Fund through at least June 30, 2012 in an amount necessary to limit total annual operating expenses to a specified percentage of average daily net assets for each class of the Fund. The Board noted that at the current expense ratio for the Fund, this expense waiver does not have any impact.

  The Board also considered the services provided by the Affiliated Sub-Advisers pursuant to the sub-advisory contracts, as well as the allocation of fees between Invesco Advisers and the Affiliated Sub-Advisers pursuant to the sub-advisory contracts. The Board noted that Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day that Invesco Advisers provides services to sub-advised Invesco Funds, including oversight of the Affiliated Sub-Advisers as well as the additional services described above other than day-to-day portfolio management. The Board also noted that the sub-advisory fees have no direct effect on the Fund or its shareholders, as they are paid by Invesco Advisers to the Affiliated Sub-Advisers.

  Based upon the information and considerations described above, the Board concluded that the Fund’s advisory and sub-advisory fees are fair and reasonable.

D.  Economies of Scale

The Board noted that the Fund shares directly in economies of scale through lower fees charged by third party service providers based on the combined size of the Invesco Funds and other clients advised by Invesco Advisers.

E.  Profitability and Financial Resources

The Board reviewed information from Invesco Advisers concerning the costs of the advisory and other services that Invesco Advisers and its affiliates provide to the Fund and the profitability of Invesco Advisers and its affiliates in providing these services. The Board reviewed with Invesco Advisers the methodology used to prepare the profitability information. The Board considered the profitability of Invesco Advisers in connection with managing the Fund and the Invesco Funds. The Board noted that Invesco Advisers continues to operate at a net profit from services Invesco Advisers and its subsidiaries provide to the Fund and the Invesco Funds. The Board concluded that the level of profits realized by Invesco Advisers and its affiliates from providing services to the Fund is not excessive given the nature, quality and extent of the services provided to the Invesco Funds. The Board considered whether Invesco Advisers and each Affiliated Sub-Adviser are financially sound and have the resources necessary to perform their obligations under the investment advisory agreement and sub-advisory contracts. The Board concluded that Invesco Advisers and each Affiliated Sub-Adviser have the financial resources necessary to fulfill these obligations.

F.  Collateral Benefits to Invesco Advisers and its Affiliates

The Board considered various other benefits received by Invesco Advisers and its affiliates from the relationship with the Fund, including the fees received for their provision of administrative, transfer agency and distribution services to the Fund. The Board considered the performance of Invesco Advisers and its affiliates in providing these services and the organizational structure employed to provide these services. The Board also considered that these services are provided to the Fund pursuant to written contracts that are reviewed and approved on an annual basis by the Board; that the services are required for the operation of the Fund; that Invesco Advisers and its affiliates can provide services, the nature and quality of which are at least equal to those provided by others offering the same or similar services; and that the fees for such services are fair and reasonable in light of the usual and customary charges by others for services of the same nature and quality.

  The Board considered the benefits realized by Invesco Advisers and the Affiliated Sub-Advisers as a result of portfolio brokerage transactions executed through “soft dollar” arrangements. The Board noted that soft dollar arrangements shift the payment obligation for research and execution services from Invesco Advisers and the Affiliated Sub-Advisers to the Invesco Funds and therefore may reduce Invesco Advisers’ and the Affiliated Sub-Advisers’ expenses. The Board concluded that the soft dollar arrangements are appropriate. The Board also concluded that, based on their review and representations made by the Chief Compliance Officer of the Invesco Funds, these arrangements are consistent with regulatory requirements.

  The Board considered that the Fund’s uninvested cash and cash collateral from any securities lending arrangements may be invested in money market funds advised by Invesco Advisers pursuant to procedures approved by the Board. The Board noted that Invesco Advisers receives advisory fees from these affiliated money market funds attributable to such investments, although Invesco Advisers has contractually agreed to waive through varying periods the advisory fees payable by the Invesco Funds. The waiver is in an amount equal to 100% of the net advisory fee Invesco Advisers receives from the affiliated money market funds with respect to the Fund’s investment in the affiliated money market funds of uninvested cash, but not cash collateral. The Board concluded that the Fund’s investment of uninvested cash and cash collateral from any securities lending arrangements in the affiliated money market funds is in the best interests of the Fund and its shareholders.

25        Invesco Municipal Premium Income Trust

Proxy Results

An Annual Meeting (“Meeting”) of Shareholders of Invesco Municipal Premium Income Trust was held on July 14, 2011. The Meeting was held for the following purpose:

(1)  Elect five Trustees by the holders of Common Shares and Preferred Shares voting together, and one Trustee by the holders of Preferred Shares voting separately, each of whom will serve for a three-year term or until a successor has been duly elected and qualified.

The results of the voting on the above matter were as follows:

				Votes
	Matter	Votes For		Withheld
(1)	David C. Arch		14,539,097		1,095,610
	Bob R. Baker		14,542,298		1,092,409
	Larry Soll		14,532,947		1,101,760
	Philip A. Taylor		14,479,471		1,155,236
	Wayne W. Whalen		14,537,913		1,096,794
	Frank Bayley(P)		86		4

^(P)  Election of trustee by preferred shareholders only.

26        Invesco Municipal Premium Income Trust

Correspondence information

Send general correspondence to Computershare, P.O. Box 43078, Providence, RI 02940-3078.

Invesco privacy policy

You share personal and financial information with us that is necessary for your transactions and your account records. We take very seriously the obligation to keep that information confidential and private.

     Invesco collects nonpublic personal information about you from account applications or other forms you complete and from your transactions with us or our affiliates. We do not disclose information about you or our former customers to service providers or other third parties except to the extent necessary to service your account and in other limited circumstances as permitted by law. For example, we use this information to facilitate the delivery of transaction confirmations, financial reports, prospectuses and tax forms.

     Even within Invesco, only people involved in the servicing of your accounts and compliance monitoring have access to your information. To ensure the highest level of confidentiality and security, Invesco maintains physical, electronic and procedural safeguards that meet or exceed federal standards. Special measures, such as data encryption and authentication, apply to your communications with us on our website. More detail is available to you at invesco.com/privacy.

Trust holdings and proxy voting information

The Trust provides a complete list of its holdings four times in each fiscal year, at the quarter-ends. For the second and fourth quarters, the lists appear in the Trust’s semiannual and annual reports to shareholders. For the first and third quarters, the Trust files the lists with the Securities and Exchange Commission (SEC) on Form N-Q. Shareholders can also look up the Trust’s Forms N-Q on the SEC website at sec.gov. Copies of the Trust’s Forms N-Q may be reviewed and copied at the SEC Public Reference Room in Washington, D.C. You can obtain information on the operation of the Public Reference Room, including information about duplicating fee charges, by calling 202 551 8090 or 800 732 0330, or by electronic request at the following email address: publicinfo@sec.gov. The SEC file number for the Trust is 811-05688.

     A description of the policies and procedures that the Trust uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, from our Client Services department at 800 341 2929 or at invesco.com/proxyguidelines. The information is also available on the SEC website, sec.gov.

     Information regarding how the Trust voted proxies related to its portfolio securities during the 12 months ended June 30, 2011, is available at invesco.com/proxysearch. In addition, this information is available on the SEC website at sec.gov.

     Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s retail mutual funds, exchange-traded funds and institutional money market funds. Both are wholly owned, indirect subsidiaries of Invesco Ltd.

MS-CE-MIP-SAR-1 Invesco Distributors, Inc.

ITEM 2. CODE OF ETHICS.

There were no amendments to the Code of Ethics (the “Code”) that applies to the Registrant’s Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”) during the period covered by the report. The Registrant did not grant any waivers, including implicit waivers, from any provisions of the Code to the PEO or PFO during the period covered by this report.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

Not applicable.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. SCHEDULE OF INVESTMENTS.

Investments in securities of unaffiliated issuers is included as part of the reports to stockholders filed under Item 1 of this Form.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

ITEM 11. CONTROLS AND PROCEDURES.

(a)  As of September 16, 2011, an evaluation was performed under the supervision and with the participation of the officers of the Registrant, including the Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), to assess the effectiveness of the Registrant’s disclosure controls and procedures, as that term is defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”), as amended. Based on that evaluation, the Registrant’s officers, including the PEO and PFO, concluded that, as of September 16, 2011, the Registrant’s disclosure controls and procedures were reasonably designed to ensure: (1) that information required to be disclosed by the Registrant on Form N-CSR is

recorded, processed, summarized and reported within the time periods specified by the rules and forms of the Securities and Exchange Commission; and (2) that material information relating to the Registrant is made known to the PEO and PFO as appropriate to allow timely decisions regarding required disclosure.

(b)  There have been no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by the report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

12(a) (1) Not applicable.

12(a) (2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.

12(a) (3) Not applicable.

12(b)      Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant: Invesco Municipal Premium Income Trust

By:	/s/ Philip A. Taylor
	Philip A. Taylor
	Principal Executive Officer

Date: November 7, 2011

Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:	/s/ Philip A. Taylor
	Philip A. Taylor
	Principal Executive Officer

Date: November 7, 2011

By:	/s/ Sheri Morris
	Sheri Morris
	Principal Financial Officer

Date: November 7, 2011

EXHIBIT INDEX

12(a) (1)	Not applicable.
12(a) (2)	Certifications of principal executive officer and Principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.
12(a) (3)	Not applicable.
12(b)	Certifications of principal executive officer and Principal financial officer as required by Rule 30a-2(b) under the Investment Company Act of 1940.

EX-99.CERT

I, Philip A. Taylor, Principal Executive Officer, certify that:

1. I have reviewed this report on Form N-CSR of Invesco Municipal Premium Income Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidating subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in this registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 7, 2011	/s/ Philip A. Taylor
	Philip A. Taylor, Principal Executive Officer

I, Sheri Morris, Principal Financial Officer, certify that:

1. I have reviewed this report on Form N-CSR of Invesco Municipal Premium Income Trust;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940 for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidating subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

(d) Disclosed in this report any change in this registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 7, 2011	/s/ Sheri Morris
	Sheri Morris, Principal Financial Officer

EX-99.906CERT

CERTIFICATION OF SHAREHOLDER REPORT

     In connection with the Certified Shareholder Report of Invesco Municipal Premium Income Trust (the “Company”) on Form N-CSR for the period ended August 31, 2011, as filed with the Securities and Exchange Commission (the “Report”), I, Philip A. Taylor, Principal Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

     (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

     (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 7, 2011

/s/ Philip A. Taylor  

Philip A. Taylor, Principal Executive Officer 

     A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided by the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

CERTIFICATION OF SHAREHOLDER REPORT

     In connection with the Certified Shareholder Report of Invesco Municipal Premium Income Trust (the “Company”) on Form N-CSR for the period ended August 31, 2011, as filed with the Securities and Exchange Commission (the “Report”), I, Sheri Morris, Principal Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

     (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

     (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 7, 2011

/s/ Sheri Morris  

Sheri Morris, Principal Financial Officer 

     A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided by the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.