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Nighy was born in Caterham, Surrey, England, the son of Catherine Josephine (nee Whittaker), a psychiatric nurse, and Alfred Martin Nighy, who managed a car garage and worked as a mechanic. He has two older siblings, Martin and Anna. Nighy attended the John Fisher School in Purley. He trained at the Guildford School of Acting, formerly known as The Guildford School of Dance and Drama.

After two seasons at the Everyman Theatre, Liverpool, Nighy made his London stage debut at the National Theatre in an epic staging of Ken Campbell and Chris Langham's Illuminatus!, which opened the new Cottesloe Theatre on March 4, 1977, and went on to appear in two David Hare premieres, also at the National.

He has starred in many radio and television dramas, notably the BBC serial The Men's Room (1991), and more recently the thriller State of Play (2003) and costume drama He Knew He Was Right (2004). He played Sam in the 1981 BBC Radio dramatization of The Lord of the Rings (where he was credited as William Nighy), and appeared in the 1980s BBC Radio versions of Yes Minister episodes. He starred alongside Stephen Moore and Lesley Sharp in the acclaimed short radio drama Kerton's Story first aired in 1996. He also played a starring role in the 2002 return of Auf Wiedersehen, Pet, portraying crooked politician Jeffrey Grainger. He has also made a guest appearance in the BBC Radio 4 series Baldi.

Nighy's two most acclaimed stage performances were in National Theatre productions. Taking the leading male role in Tom Stoppard's Arcadia (1993), he played an unscrupulous university don in witty exchanges with Felicity Kendal, his famous ironic 'snicker' much in evidence; and he gave a virtuoso performance as a consultant psychiatrist in Joe Penhall's Blue/Orange (2000), for which he won an Olivier Award nomination for Best Actor, and which transferred to the West End at the Duchess Theatre the following year.

In 2003, Nighy played the role of the Vampire Elder Viktor in the American production Underworld and returned in the same role for the sequel Underworld: Evolution in 2006. In February 2004, he was awarded the BAFTA Film Award for Best Supporting Actor for his role in Love Actually, and followed this up at the BAFTA Television Awards in April with the Best Actor award for State of Play. He also appeared in the comedy Shaun of the Dead.

In early 2004, the British tabloid press reported Nighy's partner as saying that he had been offered the coveted role of the Doctor in the 2005 revival of the BBC television series Doctor Who. He is alleged to have told reporters that he had considered but ultimately rejected the offer.[who?] The editor of Doctor Who Magazine, Clayton Hickman, had earlier mentioned to the press that Nighy was the first choice of executive producer and writer Russell T Davies. The role was accepted by Christopher Eccleston some weeks later and Davies subsequently claimed that Eccleston had always been the first choice for the role.

In 2005, he appeared as Slartibartfast in the film adaptation of The Hitchhiker's Guide to the Galaxy, by Douglas Adams and also in the one-off BBC One comedy-drama The Girl in the Café. In February 2006, he appeared in scriptwriter Stephen Poliakoff's one-off drama, Gideon's Daughter. Nighy took the lead character of Gideon, a successful events organiser who begins to lose touch with the world around him. This performance won him a Golden Globe Award for Best Actor in a Mini-series or TV Movie in January 2007. Also in 2006, Nighy made his Broadway debut alongside Julianne Moore in The Vertical Hour, which was directed by Sam Mendes at the Music Box Theatre.

Nighy appeared in Pirates of the Caribbean: Dead Man's Chest, where he played the principal villain, Davy Jones. He reprised the role in the 2007 sequel, Pirates of the Caribbean: At World's End.

He also provides the narration for the 2007 BBC series Meerkat Manor. Recently, he played the role of Richard Hart in Notes on a Scandal, for which he was nominated for a London Film Critics Circle award. He has twice played burnt-out rockstars: Ray Simms in Still Crazy and Billy Mack in Love Actually.

With the announcement of Underworld: Rise of the Lycans, Nighy will reclaim his memorable role as Viktor. Filming began in January, 2008. David Yates has said that Nighy would be his first choice for the role of Minister for Magic Rufus Scrimgeour, in Harry Potter and the Half-Blood Prince which is said to be in theaters July 17 2009. Nighy is also set to star in a brand new film Wild Target[5] alongside actress Helena Bonham Carter which will be filmed on Isle of Man and in London, in the UK.

Nighy shared a 27 year relationship with actress Diana Quick with whom he has a daughter Mary (born 1984). He is a supporter of Crystal Palace Football Club and is the Patron of the CPFRIS (Crystal Palace F.C. Fast Results & Information Service) Disabled Children's Club. Nighy lives near the director Richard Curtis in Suffolk. He has Dupuytren's Contracture, a hereditary condition which causes the ring and little fingers of each hand to be permanently bent inwards towards the palm.

• Agony (1981)
• Eye of the Needle (1981)
• Curse of the Pink Panther (1983)
• The Little Drummer Girl (1984)
• Hitler's SS: Portrait in Evil (1985)
• Thirteen at Dinner (1985)
• The Last Place on Earth (1985) (TV)
• The Phantom of the Opera: The Motion Picture (1989)
• Being Human (1993)
• FairyTale: A True Story (1997)
• Still Crazy (1998)
• Kiss Me Kate (1998) (TV)
• Guest House Paradiso (1999)
• Blow Dry (2001)
• Auf Wiedersehen, Pet (2002)
• The Inspector Lynley Mysteries: Well Schooled in Murder (2002) (TV)
• The Lost Prince (2003) (TV)
• State of Play (2003) (TV)
• Ready When You Are, Mr McGill (2003)
• Love Actually (2003)
• I Capture the Castle (2003)
• Underworld (2003)
• Shaun of the Dead (2004)
• He Knew He Was Right (2004) (TV)
• Enduring Love (2004)
• The Girl in the Café (2005)(TV)
• The Magic Roundabout (2005) (voice)
• The Hitchhiker's Guide to the Galaxy (2005)
• The Constant Gardener (2005)
• Underworld: Evolution (2006)
• Pirates of the Caribbean: Dead Man's Chest (live action, voice and motion capture) (2006)
• Flushed Away (2006) (voice)
• Notes on a Scandal (2006)
• Stormbreaker (2006)
• Hot Fuzz (2007)
• Pirates of the Caribbean: At World's End (live acting, voice and motion capture) (2007)

• Valkyrie (2008)
• G-Force (2009)
• Astro Boy (2009) (voice)
• Underworld: Rise of the Lycans (2009)
• The Boat That Rocked (2009)
• Wild Target (2009)