(1)Section 61 of FA 1987 (oil taxation: nominations) shall be amended as follows.
(2)In subsection (1) omit “, supplies and appropriations”.
(3)For subsections (3) and (4) substitute—
“(3)If the market value of a relevant delivery ascertained in accordance with Schedule 3 to the principal Act exceeds a participator's delivery proceeds of a relevant delivery (within the meaning given by Schedule 10), the excess shall be brought into account by him in accordance with section 2(5)(e) of the principal Act.
(4)If a relevant delivery is a delivery of blended oil within the meaning of section 63, regulations under section 2(5B) of the principal Act shall apply for the purposes of determining the proportion of the excess attributable to a field.
(4A)For each month in which a participator makes a relevant delivery, his monthly excess is the sum of his excesses (if any) calculated in accordance with subsection (3).
(4B)For each chargeable period of an oil field “the excess of nominated proceeds for the period” means, in relation to a participator in the oil field, that proportion of the sum of his monthly excesses for the chargeable period (if any) which is attributable to the field.”
(4)Subsections (6) and (7) shall cease to have effect.
(5)In subsection (8) for “9th February 1987” substitute “ 1st July 2006 ”.
(6)In subsection (9)—
(a)omit “subsection (7) or”, and
(b)after “shall” insert “ (unless otherwise expressly provided) ”.
(7)This section shall have effect in relation to chargeable periods ending on or after 1st July 2006.