British Immigration and Security Minister James Brokenshire told lawmakers on Thursday that the move will send a message on just how strongly the UK condemns terrorism.
The ban will make it a criminal offense to be a member of or to provide support to the ISIL.
British Home Office officials have said that the move was triggered by the Takfiri group’s actions in Syria, but developments in Iraq had underlined the need to ban the group in Britain.
The latest developments come as ISIL is waging a war that has engulfed a large swathe of both Iraqi and Syrian territories.
Fears are growing that European militants trained and hardened in Syria may carry out terrorist attacks once they return home.
Hundreds of Europeans have gone to Syria to fight against the Damascus government.
On June 3, British Prime Minister David Cameron said the terrorist threat from Syria was more dangerous than threats from Afghanistan or Pakistan. Cameron also said that British security services had to work hard to prevent a terror attack in Britain.
European opponents of the Syrian government voice concern as militants appear to be biting the hand that feeds them.
The West and its regional allies including Qatar, Saudi Arabia, and some Persian Gulf Arab states are giving financial and military support to the militants in Syria and Iraq.
Analysts believe the ongoing crisis will backfire on the West as militants are now returning to the countries they came from, including those in Europe.