You can go to Admin - Modules - Order Totals - Shipping and set Free Shipping just for national customers. That'll take care of the UK.
If you'll never want to sell outside the UK, the easiest way is probably to back up your database, then run this in Admin - Tools - Install SQL Patches :
DELETE from countries WHERE countries_iso_code_3 NOT IN('GBR');
That will remove all countries except GBR, and no one with an address outside the UK will be able to create an account.
You could put some verbiage on the create account page directing international visitors to your Contact Us page.
Of course, I wouldn't be able to register and buy something as a gift from your site and have it shipped to someone in the UK.
First of all, I'd like to thank you very much for your post, you don't know how happy and grateful I am for it ^_^ You're very kind.
I do like the second method very much but I think I'll try the first one to see how I like it... When I try to change the zone for the free shipping, it comes up with only 'Florida'? How can I change this? Thanks very much, I'll probably try the second method after.
Before you do anything with zones, try just Admin - Modules - Order Total - Shipping. Click Edit and set free shipping to True, then the 'national' radio button at the bottom.
Create a test account in the UK and see if it gets automatic free shipping. It will. Then create an account with an address outside the UK - the shipping options should show up on the first Checkout page - no free shipping.
Once that's working, then run the SQL patch. Only customers in the UK will be able to create an account.
Thanks a bunch Steve, I think I have it sorted now - thanks a lot for your help, I appreciate it.
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