Gender tick boxes on official forms would be scrapped by the Liberal Democrats.
The measure, in a new policy adopted by the party conference in Bournemouth, is part of a package aimed at cutting discrimination against transgender and intersex people.
Other policies in the motion included plans to impose waiting time standards in all aspects of the gender healthcare service and an independent inquiry into systemic abuse of transgender people in the NHS.
Spokeswoman Meral Hussein-Ece said: "We've come a long way in this country towards achieving the equality transgender people want and deserve.
"But so much more needs to be done. That is why we have designed a package of measure to help reduce prejudice against the community.
"Transgender rights are human rights. We need both our health service and our laws to reflect this fundamental fact."
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