I live in the UK however I want to use a web host in the USA .

Am I able to do this and what if any problems will I encounter ?

U don’t see any problem if you have a webhost at USA

You will not face any kind of problem as of such but if your target market is UK it’s better to be hosted on UK based servers.

Yes,u r right. SEs would categorize your website as a UK website which would get your site better rankings in Google.co.uk for your targeted keywords.