Yes, you can.
Mutual funds are tax-efficient if they are held in an ISA or self-invested personal pension (SIPP).
Investments inside an ISA or SIPP incur:
No capital gains tax (usually payable on gains over £3,000)
No UK dividend tax (usually payable on dividends over £500)
If you were to invest using a General Investment Account (GIA), then you would be liable to pay these taxes.
ISA and SIPP eligibility rules apply. Tax treatment depends on personal circumstances and current rules may change.