Hi I have a client who has a pension plus UK & foreign dividend income and in addition has paid £1,600 of gift aid. I was not expecting there to be any tax due but my software is calculating that the gift aid paid is not covered by "tax paid" so is charging it to my client. Shouldn't the foreign tax suffered on the Australian, fully franked dividends, be used as tax paid for gift aid purposes? Do I need to do something different this year now that notional tax credits have ceased? Or is it correct and the tax is due. I cannot seem to find any guidance on this quirky situation so any help would be appreciated.