Deborah Jack, chief executive of the National Aids Trust has hailed the new policy for NHS workers with HIV for being "based on up-to-date scientific evidence and not on fear, stigma or outdated information".
Self-testing kits for HIV will be legalised in the UK from April 2014, with the aim of improving early detection of the disease.
If a test is positive, people will be advised to have a follow-up test at an NHS clinic to confirm the results.
According to the latest estimates, there are about 100,000 people in the UK are living with HIV, although experts say a quarter of those who are infected do not know they have it.
In 2011, there were around 6,000 new diagnoses of HIV in the UK.
England's chief medical officer, Professor Dame Sally Davies, has said it is time to scrap "outdated rules" which ban NHS workers with HIV carrying out certain procedures on patients.
She said that with effective treatment "people are leading lives that are normal in quality and length".
"With effective treatment, they are not infectious," she added.
Under new rules, healthcare workers with HIV will be allowed to undertake all procedures if the following conditions are met:
- They are on effective combination anti-retroviral drug therapy.
- They must also have an undetectable viral load of HIV in their system.
- Public Health England will set up a confidential register holding data on infected workers, including on their viral load and treatment.
- In addition, staff must be monitored every three months by the person treating them and by occupational health professionals.
NHS workers are currently tested for HIV at the start of their career.
Anyone going into a job that could expose patients to potential risk is also tested.
Staff are obliged under professional codes of conduct to have a further test if they think they may have been exposed to HIV, but this is not legally enforced.
The Government is to lift a ban on NHS workers with HIV carrying out certain procedures on patients.
Staff in the UK who are undergoing treatment for HIV will be able to take part in all procedures from which they are currently banned, including surgery and dentistry.
England's chief medical officer, Professor Dame Sally Davies, said science had moved on and it was time to scrap "outdated rules".
She added that better treatment meant HIV was often a chronic condition that could be managed, with people living long and normal lives.
The National AIDS Trust welcomed the Government's plans to allow HIV self-testing kits, saying they have "an important role to play".
Deborah Jack, the trust's chief executive, said: "With around 25,000 people in the UK living with HIV without knowing it, it is vital that we offer as many options as possible to take an HIV test.
"Self-testing kits have an important role to play in reaching people who are uncomfortable or unable to test in a sexual health clinic or other healthcare setting.
Legalisation is an important step to ensure that the tests available are accurate, safe and appropriately regulated."
New law which will allow people to find out whether or not they are infected with HIV by testing in the comfort of their own homes is a "welcome" move, according to a leading HIV charity.
Lisa Power, policy director at Terrence Higgins Trust, said:
Plans to allow people to self-test whether they have HIV in their own homes follow the Health Protection Agency's warning last November that a record number of people in the UK were living with HIV, with the number of people with the virus reaching nearly 100,000.
Officials from the Department of Health are expected to say that home testing may help people detect their infection earlier on - which could lead to more effective treatment options and reduce the infection spreading.
Public Health Minister Anna Soubry is expected to say: