London is thus following Washington, which in July lifted the US terror designation of the group.
The British decision paves the way "for closer relations with the new Syrian government", the Foreign and Home Office writes in a joint statement.
HTS, which was previously linked to al-Qaida, was leading in the uprising that led to the fall of the Assad regime last year.
The group's commander Ahmed al-Sharaa then took over as president of Syria and is now leading the country during a five-year transition period. HTS has been officially dissolved, but its members have been incorporated into the new state apparatus.