Ngwenya (Pty) Ltd has a 28 February 2025 year end. The company made the following special payments during the 2025 year of assessment:

1) R45 000 pension annuity payment payable for life to Lelo Shlali a former employee who retired three years ago as a result of old age.

2) R55 000 payment payable annually for the next 10 years to Shaba Lala who won the lotto and ceased working.

3) R95 000 annuity payable annually to Sally Shange, a dependant of a former employee, Ricky Shange who deceased on 1 October 2024.

On 1 April 2024, Ubuntu (Pty) Ltd acquired the first floor and one basement parking level of a commercial building in Cape Town CBD for R7 500 000. This part of the building will be used by Ubuntu for trade purposes.

Calculate the capital allowance available to Ubuntu (Pty) Ltd on the part of the commercial building they acquired for the 2025 year of assessment ended 28/29 February. Assume Ubuntu (Pty) Ltd is not a Small Business Corporation, as defined in the Act.

Ngwenya (Pty) Ltd manufactures vehicles. During the year of assessment the company incurred the following costs to manufacture one vehicle:

-Production costs = R2 800 000

-Testing costs to get the vehicle roadworthy = R90 000

-Delivery truck traffic fine due to worn-out windshield wipers = R1 500

-Transportation costs to the warehouse = R25 000

Ubuntu (Pty) Ltd acquired a second-hand delivery vehicle at a cost of R80 000 on 1 September 2023 and immediately brought it into use in its business, for the purpose of making deliveries. The delivery vehicle was used throughout the 2024 and 2025 year of assessment ended 29 February 2024 and 28 February 2025. In terms of Binding General Ruling No. 7, an acceptable write-off period for this asset would be four (4) years.

Calculate the tax value of the delivery vehicle as at 28 February 2025. Assume Ubuntu (Pty) Ltd is not a Small Business Corporation, as defined in the Act.

Ngwenya (Pty) Ltd incurred some research and development costs. The research and development was approved by the Minister of Science and Technology under section 11D(9) on 30 June 2024. The following expenses relating to this research were incurred during the 2025 year of assessment:

-Computer equipment purchased for R1 000 000 was brought into use on 1 September 2024 for the purposes of this research.

-Research consumables for this project were purchased on 31 May 2024 for an amount of R350 000.

-Salaries of R650 000 were paid to research personnel on 31 December 2024.

Ngwenya (Pty) Ltd had the following bad debts as at 28 February 2025:

-Bad debts - relating to trade debtors - Namibian located customers = R70 000

-Bad debts - relating to trade debtors - South African located customers = R156 000

-Bad debts - relating to loans made to former employees = R19 800 (including interest charged on the loans of R2 200)

Ngwenya (Pty) Ltd made a cash donation of R35 000 to a public benefit organisation (PBO) approved by the Commissioner and received a section 18A receipt from it. Assume Ngwenya (Pty) Ltd has a taxable income of R460 000 for its year of assessment ending on 28 February 2025, before allowing a deduction for donations in terms of section 18A.

On 1 February 2022, Ubuntu (Pty) Ltd acquired a new non-manufacturing asset for R260 000. The asset was brought into use immediately. On 30 April 2024 the asset was sold for R50 000 cash.

Calculate any recoupment or scrapping allowance for Ubuntu (Pty) Ltd on this machine for the 2025 year of assessment ending 28/29 February. Assume Ubuntu (Pty) Ltd is not a Small Business Corporation, as defined in the Act. In terms of Binding General Ruling No. 7, an acceptable write-off period for this asset would be three (3) years.

A fire occurred at Ngwenya (Pty) Ltd's warehouse on 15 September 2024, trading stock with a value of R550 000 was destroyed. On 20 January 2025, the insurance company awarded the company R280 000 for the loss of this trading stock.

How much can Ngwenya (Pty) Ltd deduct for tax purposes relating to the insured stock for the year of assessment ended 28 February 2025.