What would be implications if a company loans 15K to third party (person), to be repaid in 3 years time. The 3% interest would be charged and payable monthly (or quaterly) on the outstanding amount. The loan contract would be drawn and the loan is expected to be fully repaid in 3 years time.
I believe 3% interest is above the current market interest rate. The company is a trading company and has retained profits of over £150K.
Are there any tax implications on the company, on its directors or on the third party?
I have searched this site and HMRC guides but cannot find this exact case.