Ok, is this such a big deal? I mean can you have a .co.uk domain and your server be located in USA, will it make much of a difference in terms of SEO?
For geo ranking it does have some effect. However i dont think its a big issue.
No.It could be the same and you may do it…
Thanks for the help everyone, I think I will try and find a GOOD UK VPS server.
ta very much
Daniel
I don’t think it does. I have clients with a .co.uk domain name that are hosted in the US or RU. So it’s not. But they do have backups at home (uk)
While it may not be the biggest signal, it definitely is something that the search engines will look at, but mostly from a latency issue (if the majority of the UK requests are being negatively affect by waiting for the request/receive time it takes from US-based data-centers).
It wouldn’t be something I put at the top of my todo list until the website was well optimized on and off page and e-commerce was a driving factor.
It does appear to make a little difference to things, but not enough imo to outway the benefits from hosting in the US (cost / spec etc)
I feel that the biggest advantage price/spec is enough to make anyone consider moving server overseas, However I feel the point made about page load times/speed is a factor that must be considered as well, having said that, what if the server (for example) in USA has better speed results than the one in the UK, ummm needs some looking into.
Thanks for all your replies 
ok, thanks guys, you hear so many different stories… I was really wasnt sure.