A new movie starring Jude Law and John Malkovich is facing the axe, because of a new British tax law governing movies shot in the UK.

The Libertine was due to begin shooting on Sunday (22FEB04) but is now in jeopardy after the government closed a tax loophole it claims was being abused.

The Inland Revenue says investors "exploited" the loophole by putting money into a film but pulling out before it reached cinemas - and avoiding paying tax on their investment.

The film industry wants the government to keep the loophole open for current productions to save them from collapse.

Also at risk is TULIP FEVER, which is due to start filming in April (04) - starring Johnny Depp.

25/02/2004 14:05