The movie is called Venetian Heat. It stars James Marsters, Derek Jacobi, and Sean Bean. It is set in Fascist Italy, and Marsters plays one half of a couple who take in two refugees and hide them.
Marsters' character is a closeted (with very good reason, given the time he lives in) homosexual. So is Bean's. And, while Jacobi and the wife fall in love, Marsters and Bean also start an affair.
According to Marsters, the movie ends in "swathes of blood", because the couple are caught sheltering the refugees, and they all die.
Go to see this film if you like tragedies. Or if you don't mind tragedies, and you're just attracted to the idea of James Marsters and Sean Bean having simulated gay sex.
Anyone who wants to see it in London, let me know and I'll definitely go with you.