Gay men will be allowed to donate blood three months after having sex instead of a year under equalities reforms announced by the Government.
Transgender people will also be able to chose their legal sex more easily as part of the shake-up announced by Education Secretary Justine Greening.
Fears over infections being passed on through donations from gay men led to an outright ban at the height of the Aids epidemic but that was cut to 12 months in 2011.
Medical advances mean the time limit will now be reduced again under plans for the NHS in England.
Ms Greening, who is also equalities minister, said the Government was building on the progress on tackling prejudice made in the 50 years since the partial decriminalisation of homosexuality.
"This Government is committed to building an inclusive society that works for everyone, no matter what their gender or sexuality and today we're taking the next step forward," she said.
"We will build on the significant progress we have made over the past 50 years, tackling some of the historic prejudices that still persist in our laws and giving LGBT people a real say on the issues affecting them."
Reforms making it easier for transgender people to chose their sex legally by removing the need for a medical diagnosis of gender dysphoria and speeding up the bureaucratic process will go out to consultation in the autumn.
Ms Greening said she wanted to cut the stigma faced by transpeople, who have to provide evidence that they have been in transition for at least two years before they can apply to legally change their gender.
It comes after Prime Minister Theresa May earlier this week indicated she was preparing to reform the Gender Recognition Act, saying that "when it comes to rights and protections for trans people, there is still a long way to go".
Suzanna Hopwood, a member of the Stonewall trans advisory group, said: "Reform is one of the key priorities in our vision for removing the huge inequalities that trans people face in the UK. The current system is demeaning and broken.
"It's vital that this reform removes the requirements for medical evidence and an intrusive interview panel, and finally allows all trans people to have their gender legally recognised through a simple administrative process. That's what we'll be calling for during this consultation, and I'm looking forward to seeing the law change soon after."
The Government accepted the recommendations of the advisory committee on the safety of blood, tissues and organs (SaBTO) on changing the deferral periods for blood donations from gay men.
Ethan Spibey, founder of the FreedomToDonate group that has campaigned for reform, said: "Today's announcement from the Government marks a world-leading blood donation policy for gay and bisexual men and the other groups previously restricted. I'm so proud that the work of FreedomToDonate and our supporters will help ensure more people than ever before are allowed to safely donate blood.
"I began this campaign because I wanted to repay the donor who saved my granddad's life after a major operation and this announcement means I'm closer than ever to doing that, with the invaluable help of our team of volunteers, and the charities and organisations FreedomToDonate represents."
Alex Phillips, blood donations policy lead at the Terrence Higgins Trust, said: "We're pleased to see a further reduction in the deferral period for men who have sex with men and we welcome this progress.
"However, we urge the Government to invest in gathering more robust scientific evidence on the risk of transmission of blood-borne viruses from men who engage in oral sex with men.
"We know from clinical and epidemiological experience that the risk of HIV from oral sex is extremely low, but this review has missed the opportunity to gather the robust evidence needed to update the policies."
Simon Calvert, a spokesman for The Christian Institute, a charity to promote the faith, hit out at the reforms changing legal rules on gender.
He said: "It is worrying when the leaders of the main political parties are so out of touch with the concerns of ordinary people.
"We need to inject a dose of reality into these discussions about transgenderism before the current political fashion runs away with us altogether.
"Allowing men to self-identify as female without any medical diagnosis allows them to invade the privacy of women and girls. Where this policy has been tried in the US, women and young girls have experienced the fear and humiliation of finding themselves sharing toilet and changing facilities with men.
"Transgender people aren't the only people with rights. Women have rights too.
"If politicians believe we can redefine our own gender at will, it's no wonder others are following this to its logical conclusion and advocating transracialism and even transageism. It's time for a reality check. Some things can't be changed."
Liberal Democrat Equalities spokeswoman Lorely Burt backed changes to the blood donations rules.
She said: "This is a victory for science over stigma.
"For many years now, it's been clear that what matters is not your sexual orientation but your sexual behaviour.
"However, gay and bisexual men in long-term monogamous relationships will still not be able to donate blood under these changes.
"That means thousands of people will still be needlessly prevented from donating blood."
Ben Wilson, Equality and Human Rights Commission executive director, said: "There's still so much more to do to ensure trans people can live as they choose without fear of discrimination or hostility.
"We welcome that the Government is prioritising this and seeking views from trans people themselves.
"We'll feed in information about a wide range of issues raised with us from school and work to other areas of life."