Glanbia shares double in a year — and so does the temptation to sell

Glanbia shares are now trading at about €24, compared with roughly €12 this time last year, prompting Ifac to warn shareholders to calculate their potential tax liability before selling

The amount owed can vary dramatically depending on when and how the shares were acquired, with a long-standing shareholder selling 1,000 shares potentially facing a CGT bill of about €7,465.

Glanbia shareholders could face Capital Gains Tax (CGT) bills running into thousands of euro if they cash in after the company’s share price doubled over the past year.

Shares are now trading at about €24, compared with roughly €12 this time last year, prompting professional services firm Ifac to warn shareholders to calculate their potential tax liability before selling.

The amount owed can vary dramatically depending on when and how the shares were acquired, with a long-standing shareholder selling 1,000 shares potentially facing a CGT bill of about €7,465.

Robert Johnson, tax partner at Ifac, said: “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. 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 before a sale, so there are no surprises.” 

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. The tax owed hinges on the ‘base cost ’ — meaning what the shares were worth when they were first acquired.

For many longer-standing farming clients, that 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 about €3,409 on the same sale.

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. All sales must be declared in the 2026 tax return by October 31, 2027.

Mr Johnson added: “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.”