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I currently have a website that is hosted on a US server, it's a .com domain, but it is targeted towards a UK audience. Would it better for SEO purposes to transfer it to a UK hosting account?
Absolutely, you should do it as soon as possible. You can also set the geographic target in Google's webmaster tools, build links from .uk domains and ensure there is a UK address on the site to encourage G to see it as a UK site, but nothing will work as well as moving hosts.
thought so thanks. Never transferred a domain before, is it easy to do? What should i look out for? Are there any fees? Does it take long? Lots of questions, thanks for your help so far.
You don't need to transfer the domain - you can just change hosts by changing your name servers.
To transfer the site you can either export the account as Monaghan mentioned or you will have to download the site's DB and files then re-import the DB and re-upload the files to the new host.
It shouldn't take long and their are only the new hosts fee's. If you are having issues I am sure you could pay someone to do it, but I am sure you will manage!