I am travelling to Budapest and therefore have a Schengen Visa. I hold an Indian passport and a valid US visa. I'm travelling from Chicago-Heathrow-Budapest and returning by Budapest-Dublin-Chicago. Would I need a transit visa for UK/Ireland?

There is a nifty widget to check if you need a transit visa or not.
This is from the UK Border Agency website:
If you are coming to the UK briefly as part of your journey to another country, you will generally need to obtain a UK visa before you travel.
  • If you will arrive on a flight, remain in the arrival lounge of the airport without through immigration control, and then depart on another flight from the same airport, you should apply for a direct airside transit visa.
  • If you will arrive in the UK, pass through immigration control and then leave the UK within 48 hours, you should apply for a visitor in transit visa.
  • If you will spend more than 48 hours in the UK, you must obtain another type of visitor visa before you travel. The Visiting the UK section lists the types of visitor visa.
In some circumstances you may be exempt from the need to obtain a visa - this is called the 'transit without visa concession'. The Transiting the UK section contains more information, and explains how to apply for a transit visa.
India is not on the list of countries that need a transit visa for Ireland.
EDIT: I was just informed by a friend that if you hold a US visa you are except from a transit visa if the USA is your point of origin or destination. I checked the UK border agency site and saw no mention if it. If anyone can confirm this, that would be handy.

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