The Budget introduced measures aimed at encouraging charities to use their buildings to provide homes for "some of the most vulnerable people in society".
A reduced VAT rate of 5 per cent was introduced for converting non-residential property into a care home or "multiple occupancy dwelling
such as bedsits.
The same rate applies to renovating a care home or multiple occupancy dwelling that has not been lived in for three years.
These changes were part of a package of measures advocated earlier by the Charities' Tax Reform Group.
Helen Donoghue, administrator of the group, said: "This is a relief we had pressed for as there are some charities trying to work in urban regeneration areas and develop community care centres, for example, that will benefit."