Loans to Discretionary Trust

[GF2]

A had a discretionary trust drawn up last year and transferred £325K into it. A is a trustee. A is not a beneficiary. The trust has invested the money in rental properties.

A would now like to lend the trust additional capital for it to buy more properties.

The objective is to allow the trust to generate additional income/ achieve capital growth outside of A's estate.

1) Are there restrictions on how much/ little interest the trust can pay to A on the loan?
2) I assume the trust can deduct any interest payments from the income it receives for the purposes of calculating its tax.
3) I assume A declares any interest they receive from the trust as income on A's personal tax return.

Are there any issues that need to be considered to avoid it being preceived that A is exceeding the £325K limit or conversely benefiting from the trust?

Many thanks for any clarification you can offer!

[maths]

1) Are there restrictions on how much/ little interest the trust can pay to A on the loan?
2) I assume the trust can deduct any interest payments from the income it receives for the purposes of calculating its tax.
3) I assume A declares any interest they receive from the trust as income on A's personal tax return.

4.Are there any issues that need to be considered to avoid it being preceived that A is exceeding the £325K limit or conversely benefiting from the trust?

Comments:

1. No more than market rate of interest should be paid (see 4 below).
2. Yes.
3. Yes.
4. To avoid the loan constituting a chargeable transfer for IHT preferable for it to be repayable on demand. No harm in it being interest free if preferred; possibly better as trust liable at 50% on income if settlor liable at 40%?
5. Settlor and spouse should not be within the class of beneficiaries.