LONDON — Nigel Thomas and Lauri Apelian’s Matador Pictures has formed a joint venture with Regent Capital to provide financing for low-budget British movies.

Dubbed Cinema One, the company will invest up to 30% of the budget for films in the $2 million to $4 million range. That includes providing cashflow to cover the value of the U.K.’s new tax credit, which is worth up to 20% of budgets.

Its first project will be “Outpost,” an action-horror project, which starts shooting in Scotland next month. Pic will be produced by Black Camel Pictures and sold worldwide by ContentFilm.

Cinema One aims to produce four to five movies in 2007. Matador previously arranged sale and leaseback deals under the old tax system for Ken Loach’s “The Wind That Shakes the Barley” and “Ae Fond Kiss.”