Halal Stocks UK: FTSE List, ISAs & Index Funds (2026)

Last updated: October 26, 2026

List of halal stocks in the UK

These large UK-listed companies were rated Shariah-compliant in our screener when we checked on 26 October 2026, all screened to AAOIFI standards. Our screener rates each company through its US-listed line (an ADR, which is a US share that stands in for the foreign one). It's the same company as the London shares. Click a name to see its live status, and use the Amal Invest app for the purification ratio.

Arm Holdings, the Cambridge chip designer, passed too. It's a UK company, but it only lists in New York.

Treat this as a snapshot, and please don't read it as a buy list. Ratings get reviewed whenever companies publish new accounts, so a stock can go from halal to non-compliant between reports. Check the live status on each stock page before you buy. If you want the screening explained properly, read whether stocks are halal.

Popular UK stocks that are not halal

These companies were rated non-compliant on 26 October 2026. Some fail because of what they do. Others fail on financial ratios, or on a mix of activities. The stock page shows the detail.

How UK stocks are screened

AAOIFI Shari'ah Standard No. 21 gives a company's shares two tests:¹

1. Business activity. The core business has to be permissible. Conventional banks and insurers, alcohol, tobacco, gambling, pork and adult entertainment fail straight away, and that alone knocks out a big chunk of the FTSE 100.
2. Financial ratios. Interest-bearing debt must be under 30% of market cap, interest-bearing deposits and securities under 30% of market cap, and non-permissible income under 5% of revenue.

Even a company that passes usually earns a little non-permissible income, like interest on its cash. You clean that up with purification, which just means giving that share of your dividends to charity. The Amal Invest app shows the purification ratio for each stock. For AstraZeneca it was about 0.47% in October 2026, so £100 of dividends means about 47p to charity.

Are ISAs halal?

It depends on what's inside. An ISA is a tax wrapper, so it's halal or not based on what earns the return. A Stocks & Shares ISA or Lifetime ISA holding screened investments is halal. A Cash ISA from a conventional bank pays interest, so it isn't.

Cash ISA

A conventional Cash ISA pays interest on your deposit, which is riba (interest, and not allowed). Islamic banks offer Cash ISAs that pay an "expected profit rate" instead. The bank invests your money in Shariah-compliant financing and shares the profit with you.² HMRC still counts these as Cash ISAs, so from 6 April 2027 the £12,000 Cash ISA limit for under-65s applies to them too.³

Stocks & Shares ISA

This is the usual route to a halal ISA. You own shares or funds, and your return comes from their dividends and growth. It's halal as long as every holding passes Shariah screening and you leave interest on uninvested cash switched off.

Lifetime ISA

A Lifetime ISA (LISA) is for buying your first home or for later life. HMRC's rules:⁴

• Open it between 18 and 39 and pay in up to £4,000 a year until you're 50. This counts towards your £20,000 ISA allowance.
• The government adds a 25% bonus, up to £1,000 a year.
• You can take money out without a charge to buy your first home (up to £450,000), from age 60, or if you're terminally ill. Any other withdrawal costs you 25% of the amount, which is more than the bonus. Say you save £800 and get a £200 bonus, making £1,000. Withdraw it early and you're left with £750.

The government bonus isn't interest. It's a fixed top-up on what you pay in. You aren't lending money to anyone to earn it. That's our reading, and if you follow a particular scholar, ask them. So it comes down to how the money inside the LISA earns. A stocks and shares LISA with screened investments is halal. A cash LISA that pays interest is not.

You can put LISA money towards a first home bought with Islamic home finance. The ISA regulations accept a purchase "made under the terms of a regulated home purchase plan", alongside a mortgage.⁵

The government plans to replace the LISA with a new First Time Buyer ISA. Until that launches, you can still open a LISA and keep paying in under the current rules.⁶

How to build a halal ISA

A halal stocks and shares ISA works like any other Stocks & Shares ISA. You just pick different holdings and change one cash setting.

The HMRC rules you need to know:

• Allowance: up to £20,000 a year across all your ISAs in the 2026 to 2027 tax year.⁷
• Who can open one: UK residents aged 18 or over.⁷
• From 6 April 2027: the Cash ISA limit drops to £12,000 for under-65s. The overall limit stays at £20,000, and you can still put the full amount into a Stocks & Shares ISA.³
• From 6 April 2027: HMRC charges a flat 22% on interest paid on cash held inside a Stocks & Shares ISA.⁸

Using a conventional Cash ISA right now? The 2027 changes are a good excuse to move that allowance into halal investments in a Stocks & Shares ISA.

To build a halal ISA:

1. Open a Stocks & Shares ISA with a platform that has the investments you want.
2. Switch off interest on uninvested cash if the platform pays it. On Trading 212 it's opt-in.⁹
3. Choose halal holdings: screened UK and US shares, UCITS Islamic ETFs, or an Islamic index fund.
4. Purify dividends and pay zakat each year. See zakat on stocks.

Picking stocks and then rechecking them is the hard part. Ratings change every few months, and miss one downgrade and you've got a non-compliant stock sitting in your ISA. Amal Invest handles that part. On Trading 212 it builds two Shariah-certified halal pies, Grow and Save, inside your Invest account or Stocks & Shares ISA. They're filtered versions of the Fidelity Growth Company Fund and the Vanguard Dividend Appreciation Fund, screened to AAOIFI standards, and failed stocks come out of the pie automatically. Trading 212 shifts your existing shares toward the new weights gradually, so rebalance the pie if you want a failed stock sold straight away.

Halal index funds for UK investors

The FTSE 100 and the FTSE All-World both include banks, insurers, tobacco and alcohol companies, so regular index funds that track them aren't halal. You've got two halal alternatives in the UK.

UCITS Islamic ETFs

These trade on the London Stock Exchange and fit in an ISA. (UCITS is the European fund standard UK investors are allowed to buy.)

Fees, tickers and Trading 212 availability are in our guide to halal ETFs on Trading 212. For performance over time, see halal ETFs compared.

HSBC Islamic Global Equity Index Fund

This one's a traditional index fund, and several UK platforms offer it. It's big (US$3.2 billion) but pricier. Its September 2026 factsheet shows an ongoing charge of 0.934% for the accumulating class,¹⁰ roughly three times what HIWS or ISWD cost. It tracks the Dow Jones Islamic Market Titans 100 Index, so it only holds 100 companies, with 79% in the US and 59% in technology.¹⁰

Something to know before you buy two of these: every halal index fund leans heavily on US tech. The biggest holdings tend to be the same few companies, so owning two funds doesn't spread your risk much further.

Buying halal US stocks from the UK

A lot of the biggest Shariah-compliant companies are American, like NVIDIA and Apple. You can buy individual US shares in an ISA or general account from the UK. What you can't buy is US-based ETFs like SPUS or HLAL, because no US fund is a recognised scheme for UK retail investors.¹¹

How costs differ between UK and US shares on Trading 212:¹²

• London shares pay 0.5% stamp duty (SDRT) when you buy. ETFs don't.
• US shares have no stamp duty, but you pay a 0.15% FX fee when your pounds are converted to dollars.

For withholding tax on US dividends, see taxes on stocks for international investors. For the platform itself, see is Trading 212 halal?

FAQ

Is the FTSE 100 halal?

No. The FTSE 100 includes banks (HSBC, Barclays, Lloyds, NatWest), insurers, tobacco companies (BAT, Imperial Brands) and Diageo (alcohol). Several FTSE 100 companies do pass screening, though, including AstraZeneca, GSK, Unilever, RELX and Experian, so you can buy those shares directly.

Is Vanguard FTSE All-World halal?

No. FTSE All-World funds such as VWRL hold thousands of companies, including banks, insurers, and alcohol and tobacco producers. See our screen of a similar global fund to see how much of it fails. For a halal global fund, look at HIWS, ISWD or IGDA.

Is a stocks and shares ISA halal?

Yes, if every holding is Shariah-compliant and you don't accept interest on uninvested cash. The ISA itself is just a tax wrapper.

Are ISA accounts halal?

An ISA account is halal if the return inside it is halal. Stocks & Shares ISAs and Lifetime ISAs with screened holdings are halal. Cash ISAs from conventional banks pay interest, so they aren't. Cash ISAs from Islamic banks pay expected profit instead and are halal. See are ISAs halal? for each type.

Is a Lifetime ISA halal?

A stocks and shares Lifetime ISA with screened holdings is halal. The 25% government bonus is a top-up on what you pay in, and we don't treat it as interest. A cash Lifetime ISA that pays interest isn't halal. You can use LISA savings towards a first home bought with a regulated home purchase plan (Islamic home finance).⁵

Is a Cash ISA halal?

Not from a conventional bank, because the return is interest. Islamic banks such as Gatehouse Bank and Al Rayan Bank offer Cash ISAs that pay an expected profit rate, which is Shariah-compliant.²

What is the best halal ISA in the UK?

What you put in it matters more than which provider you pick. Go for a low-fee Stocks & Shares ISA, turn off cash interest, and hold screened shares, UCITS Islamic ETFs like HIWS or ISWD, or halal Trading 212 pies.

What are the best halal stocks to invest in the UK?

There's no single best stock, and this isn't personal advice. The UK companies that passed AAOIFI screening in October 2026 cover pharmaceuticals (AstraZeneca, GSK), consumer goods (Unilever, Haleon), data and software (RELX, Experian, Sage), mining (Rio Tinto) and housebuilding (Persimmon, Barratt Redrow). Check each one's live status before you buy.

Are there halal REITs in the UK?

REITs (property companies that pay out most of their rent) usually borrow at interest, so check each one against the 30% debt test. HSBC lists a FTSE EPRA NAREIT Developed Islamic UCITS ETF in London (HINS in GBP, HIND in USD). See halal real estate investing for other options.

Is Tesco a halal stock?

Tesco was rated non-compliant in our screener on 26 October 2026, and so were Sainsbury's and Marks & Spencer. Open the Tesco stock page for the current status.

References