The Taoiseach Leo Varadkar has firmly ruled out any move to tax the sale of family homes. The proposals from Department of Finance officials had being greeted with a massive backlash.

Financial experts said the opposition to the suggestion of taxing home sales was so strong it would bring people on to the streets in a show of force not seen since the water protests.

But Mr Varadkar told the Irish Independent: "The Government has no plans or intentions to change the rules which exempt the proceeds of the sale of a family home from capital gains tax."

His officials were keen to stress the proposal comes from a discussion paper setting out options, and designed to generate debate ahead of October's Budget.

But there is no firm proposal to lift the exemption that means capital gains tax does not apply when a family sells its home while the owners are still alive.

Mr Varadkar's intervention comes after Age Action, the Irish Citizens Parliament, accountancy bodies, and a range of farmer representative groups voiced trenchant opposition to the proposal.

If the proposal was to be implemented, it would mean a family moving to a larger home or elderly people downsizing would be hit with huge capital gains taxes.