Tax treatment for interest income generated from director's loan

For the director's loan lent to the company that is a new start-up, (1) for the interest income earned from the "director's loan" which would be placed as "deposits", is it treated as "trading income" for corporation tax purpose? (2) as the director's loan is interest free, do I need to pay income tax for the interest income generated by the company under my own self assessment? I'll only receive dividend if there is any profit. (3) can I offset the "deposit interest income" by the expenses used to set up the business (advertising, equipment, staff salary, training)? As the business is a new start up, there is a high possibility that there is no or very minimal income from the business in the first two years. Income from the company would therefore mainly or solely from the interest earned from the deposit (the director's loan). Thank you

Hi AA L,
1) You lend money to the company and the company earns bank interest (presumably) – the interest the company earns will be income from non trading loan relationships, declared in the company tax return form CT600 at box 170. 
2) No, please see above.
3) Interest earned by the company will have to declared in box 185. Please approach a tax adviser or accountant on the preparation of the company’s trading and profit and loss account and balance sheet. The profit or loss in the accounts will have to adjusted for tax purposes to arrive at a taxable profit or loss. If there is a trading loss the company may claim to allocate the trading loss against any interest income declared in box 185.
Thank you.

[Post amended to show the correct box number, apologies for any confusion - Admin]

Thank you