Urban Development Zone allowance under the Income Tax Act

© Steven Jones – [[www.123rf.com 123RF.com]]</span>In line with international models, South Africa has attempted to incentivise investment into the development and renewal of certain urban areas. One of these incentives is the accelerated tax depreciation allowance, introduced in 2003 by section 13quat of the Income Tax Act, 1962, and is commonly referred to as the Urban Development Zone (UDZ) allowance.