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Thank you Peter for your helpful and prompt reply - this has worried me a lot and you only confirm my fears.  (What makes it worse is that it is for a client).  In migrating to a UK server are there any things I should be aware of.

Unbeknown to me our web developers have hosted our UK e-commerce site (and only serving the UK & outer islands) on a US based server.  Can this impact our SEO efforts?  My further concern is when it comes to sending out emails and opt-in regulations - I am right to be concerned about this as well?
Thanks