Global hosting?

Probably a dumb question, but does it matter where in the world you
actually host your site?

Due to some bandwith problems approaching on the horizon I would
like to switch to a dedicated server with a generous allowance. Plus I
would like my own box.

Prices in the UK however are way above what I see in the US. It seems
as if we just swap the dollar sign for the pound sign ... like $99 > £99! ...
which is basically double the amount.

Are there any financial or legal restrictions that prohibit you from hosting
a site on the other side of the planet? Or any other type difficulties to
consider?

Hi SugarKane,

No real restrictions - however, connectivity to Europe from US servers- all other things being equal - will not be as quick for browsers in th UK.

Having said this, if your server terminates on a premium pipe - you should be fine - plus, if you're targetting visitors in North America, as well as the U.K. - it may be a good fit...

As Cartika said, the only difference that location makes is that computers that are closer to the server will connect a bit quicker.

A lot more depends on peering, than location these days.

You can connect to el cheapo hosting who peers through 'Joe's Backbone' which is nothing more than some guy who set up an CLEC, or use a host that directly connects to a superior peer.

Then there's latency, lag, pipeline ... lots of factors involved. If some joker sets up hosting with a single T1 (do they still use T1's these days?) and oversells his customer base, well there's only so much pipe.

The fact almost half of our customers are in the UK should tell you something.

deamonguy is right.
Choosing for a fast less expensive USA web host won't disturb your UK visitors, as long as that USA host has fast server(connections).