39In section 815A of the Taxes Act 1988 (transfer of a non-UK trade) for subsections (2) to (4) there shall be substituted—
“(2)Where gains accruing to company A on the transfer would have been chargeable to tax under the law of the relevant member State but for the Mergers Directive, this Part, including any arrangements having effect by virtue of section 788, shall apply as if the amount of tax, calculated on the required basis, which would have been payable under that law in respect of the gains so accruing but for that Directive, were tax payable under that law.”