The UDZ allowances were introduced by National Treasury during 2003 to kick-start urban and inner city renewal.

It provides significant tax relief for qualifying construction, refurbishment or acquisition expenditure within certain specified areas in South Africa (e.g., for Johannesburg these include the inner city, Newtown, Braamfontein, Hillbrow and Berea). 

Subsequent to significant support for this provision, National Treasury have extended the UDZ allowances from 31 March 2014 to 31 March 2020.

Source: CAS