With a Stocks & Shares ISA, you can invest up to £20,000 in this tax year. A Stocks & Shares ISA is a tax-efficient savings scheme that allows you to invest up to £20,000 in the 2018/19 tax year. Using up your allowance each year can significantly boost your investments and save you tax when compared with other saving and investment products. You can use your full ISA allowance in a Cash ISA, Stocks & Shares ISA, or a combination of the two. You can also transfer from a Cash ISA to a Stocks & Shares ISA, and vice-versa. However, you can only pay in to one Cash ISA and one Stocks & Shares ISA in each tax year. You can open a Stocks & Shares ISA if you are a UK resident aged 18 or over. Why Invest in a Stocks & Shares ISA? Out of the two ISA options, Cash ISAs and Stocks & Shares ISAs, Britons tend to choose cash. Over the short-term, this can be a sensible choice, but it’s important to remember that inflation can eat into your capital therefore storing your money in a Cash ISA could potentially be losing you money. With the current inflation rate, this means that any money you have held in Cash ISA’s is actually losing buying power. In order to reach your financial goal sooner, you will probably want to consider products that can potentially out-perform inflation each year. A Stocks & Shares ISA has the potential to do this, as the returns you receive are directly linked to the performance of the assets held within the fund. You can withdraw cash from your Stocks & Shares ISA at any time, without losing the tax breaks, and reinvest back into the ISA within the same tax year, without it counting towards your annual allowance.