Insights · Tax wrappers
Halal ISA: investing tax-efficiently the Islamic way
A stocks-and-shares ISA is just a wrapper — which means a halal ISA is not a product you buy, it's a halal portfolio you hold inside the wrapper. Here is how to build and evidence one.
Can an ISA be Shariah-compliant?
Yes. The ISA is a tax container; its Shariah status comes entirely from the investments inside it. The major platforms' stocks-and-shares ISAs can hold the verified Shariah funds and ETFs — several providers publish ISA eligibility explicitly on their fund pages. Wahed sells a halal stocks-and-shares ISA direct to consumers. What does not exist is an off-the-shelf halal ISA on adviser platforms; the assembled route is the practical one for advised clients.
Building the halal ISA: three checks
1. Funds. Start from a verified, dated list — index options from ~0.30% TER, active options above that (see our verified funds list). Match the screening method to the client's standard.
2. Cash interest. Cash held inside the ISA can accrue interest. For clients who must avoid it, check the platform's cash options (interest off, or donate to charity) before implementation — not every platform offers an opt-out, and some require a request.
3. Ongoing status. Shariah status is a point-in-time fact. Put a re-screening date in the diary — the annual review is part of the product.
Free · Working edition
The full verified fund list is in the Field Guide
Every ISA-eligible Shariah fund and ETF with ISINs, screening methods and platform evidence — plus the 10-point pre-recommendation checklist. Free when you join.
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Common mistakes
Assuming an ethical fund is halal (it isn't — see our ESG vs Shariah explainer). Buying a "Shariah" fund without checking which standard it passes. Ignoring platform cash. And the biggest one: treating the ISA as done at purchase rather than reviewed annually.
Frequently asked questions
Can you get a halal stocks and shares ISA in the UK?
Yes — major platforms' ISAs can hold verified Shariah funds and ETFs. Wahed sells a halal stocks-and-shares ISA direct to consumers; on adviser platforms there is no off-the-shelf halal ISA, so the assembled route is the practical one.
Which funds can go in a halal ISA?
Any Shariah-compliant fund or ETF the platform carries — index options from around 0.30% TER, plus active funds. Check the exact share class.
Do halal ISAs pay interest?
The investments aim for capital growth and permitted income, not interest. Cash held in the wrapper may accrue interest — platforms differ on opt-outs and donation routes, so check before implementing.
What returns do halal ISAs target?
No promises — returns depend on the underlying equity or sukuk markets. Shariah screening constrains what is held, not what is earned.