The ceremony on Thursday, hosted by Gregory's Two Girls star John Gordon Sinclair, will honour the cream of homegrown film-making talent, including trophies for best film, actor/actress, newcomer and director.

Actor Tim Roth nominated for his directorial debut

Hollywood actress Anjelica Huston and Motown legend Diana Ross will be among the guests at the event being held at London's Cafe Royal.

Movies on the shortlist include the dance culture film Human Traffic and the cross-cultural coming of age film East Is East.

Tim Roth's directorial debut The War Zone - a harrowing story of abuse - tops the nominations list after being shortlisted for five awards.

A jury of 10 made up of key industry players, including An Ideal Husband actress Sadie Frost and David Thompson from BBC Films, will pick the winners.

Hollywood star Anjelica Huston is on the guest list

They will give out a total of 13 awards, including three special jury awards for Lifetime Achievement, Producer of the Year and the Special Jury Prize.

To be eligible for consideration, films must not be solely funded by a single studio.

They must also be produced, or majority co-produced by a British company, or in receipt of at least 51% of their budget from a British source.

This is the second year of the awards ceremony and again there seems to be an emphasis on gritty tales of modern life.

Thriller Lighthouse receives two nominations

Along with The War Zone in the Best Film category is Michael Winterbottom's Wonderland. It follows three generations of one family as their separate paths cross each other over one weekend in London.

All the films in this category see their directors nominated for Best Director.

The Best Newcomer category sees Simon Bowles nominated for Lighthouse - a menacing tale about a prison ship carrying, among others, the most feared man Europe to a remote island jail.

Among those up for Best Actor and Best Actress are Little Voice stars Michael Caine and Jane Horrocks, Gina Mckee for Wonderland and Ray Winstone for The War Zone.

1998: Ken Loach and My Name Is Joe actress Louise Goodall

Last year, Winstone won Best Actor for Gary Oldman's hard-hitting Nil By Mouth and Kathy Burke won Best Actress for the same film.

Ken Loach won Best Film and Best Director for his uncomprising My Name is Joe.

As well as British output, the awards also honour independent film-makers overseas working in English and foreign languages.

This year's nominations include Spanish director Pedro Almodovar's All About My Mother.

The awards are part of the Raindance Festival of British Independent Film which runs until 21 October in London.

List of nominees

Best British Film