Will Glanbia share sales trigger 'hefty' tax bills?
Shareholders seeking to cash in on a surge in the Glanbia plc share price could face "hefty" tax bills, ifac has warned.
According to the accountancy firm, Glanbia shares have doubled in value compared to this time last year.
Last month, shares in the global nutrition company reached a year-to-date high of €25.60.
The performance reflects a strong upward trend driven by soaring global demand for protein and nutrition products.
Glanbia
The increase in share price has "triggered a wave of queries" to ifac from Glanbia shareholders seeking information about what they would owe if they sold shares.
Ifac noted that a shareholder’s potential capital gains tax (CGT) bill could vary by thousands depending on when they got their Glanbia shares.
CGT is charged at 33% on the increase in value of shares between acquisition and sale, with individuals entitled to an annual exemption of €1,270.
Therefore, the tax owed hinges on the ‘base cost’, what the shares were worth when first acquired.
"We’re seeing a real spike in queries from shareholders watching the Glanbia price and wondering what a sale would cost them at tax time," Robert Johnson, tax partner at ifac, said.
"The honest answer is: it depends almost entirely on when those shares first came into their hands.
"Anyone thinking of selling should work out their likely bill now, before a sale, so there are no surprises," he added.
Tax
Johnson said that for many longer-standing farming clients, the base cost is minimal, as their shares trace back to co-op conversions at a nominal €1.27 each.
"For a shareholder in this position selling 1,000 shares at €24, the CGT bill would come to roughly €7,465.
"For younger clients who inherited or were gifted shares more recently, the bill could be far lower.
"Someone who inherited shares a year ago at €12.30 would pay CGT of around €3,409 on the same sale less than half the amount owed by a shareholder with a minimal base cost," he said.
CGT on any shares sold up to November 30 must be paid by December 15, while shares sold in December must be paid by January 31, 2027.
While all sales must be declared in the 2026 tax return by October 31, 2027.
"With a share price movement like this, it’s understandable that shareholders want to act quickly, but the tax deadlines don’t move to suit a sale.
"Getting the calculation right, and knowing which deadline applies, makes all the difference between a straightforward tax return and an unwelcome surprise further down the line," Johnson added.
Financial results
Earlier this month, Glanbia announced its 2026 half year results for the six-month period ending on July 4 (HY2026).
The Kilkenny-based company updated its earnings per share (EPS) to 81.24 US cent, "ahead of expectations".
Its EPS outlook for the full year 2026 (FY2026) was upgraded to between 17-20% growth.
Revenue in the period stood at $2.1 billion, compared to $1.9 billion in HY2025, an increase of 7%.
