The UK Islamic Finance Landscape
The UK is one of the world's leading Islamic finance centers. London is home to more Islamic bank branches than any non-Muslim-majority country. The UK government has issued sovereign sukuk. Several UK banks offer Islamic products.
Halal ISAs in the UK
Stocks and Shares ISAs allow UK residents to invest up to £20,000 per year tax-free. You can use a Stocks and Shares ISA with any broker that allows ETF investing and buy SPUS, HLAL, or individual halal stocks. The ISA wrapper itself is neutral — it's what you invest in that determines halal status.
UK Halal Investing Platforms
- Wahed Invest UK: FCA-regulated robo-advisor with fully Sharia-supervised portfolios. Offers ISA and general investment accounts.
- Hargreaves Lansdown: UK's largest investment platform — buy any halal ETF through their ISA.
- AJ Bell: Popular UK broker, supports ETF trading including halal options.
- Interactive Investor: Low fixed-fee broker, good for halal ETF investors.
Islamic Mortgages in the UK
The UK has the most developed Islamic home finance market in the West. Major providers include: Al Rayan Bank (largest Islamic bank in the UK), Gatehouse Bank, UBL UK, and HSBC Amanah. Products use diminishing musharakah or ijara structures. Stamp duty has been adjusted to avoid double taxation on Islamic mortgages.
UK Halal Stocks
The FTSE 100 contains many halal-screened stocks — use Zoya or Islamicly to screen individual UK stocks. Major UK halal-compliant companies include AstraZeneca, GlaxoSmithKline, BP, Shell, and RELX Group.
Tax Considerations
Dividends from halal stocks in an ISA are tax-free. Capital gains within an ISA are tax-free. Outside an ISA, standard UK dividend and CGT rules apply. Zakat on UK investments follows standard zakat on stocks rules — consult the National Zakat Foundation (UK) for guidance.
Bottom Line
UK Muslims have excellent halal investing options. Use a Stocks and Shares ISA with Wahed Invest or any major broker, invest in SPUS/HLAL or individual halal stocks, and consider Al Rayan Bank for Islamic home finance.