There was a change in the law in Scotland that means if someone uses racial language it is not necessary a race hate crime. For example, the Asian driver of a car knocks a white cyclist off his bike. If the white cyclist shouts "stupid Paki bastard" back at the driver, as he is lying in pain on the ground, that is not deemed to be a racist crime. If the cyclist had been knocked down by a fat person, a female or someone with red hair or wearing glasses, he may have remarked on that physical aspect and shouted "stupid speccy bastard" or "stupid cow, bloody women drivers".
http://www.gov.scot/Publications/2002/05/14608/3653
"First, the behaviour described in the report may not be criminal in itself. Using racist language, for instance, only becomes a criminal matter under the new offences created by the Crime and Disorder Act (section 50A) if it causes or is intended to cause a person alarm or distress. Where such behaviour is regarded as likely to cause a person alarm or distress then it may form the basis of a common law charge with racial aggravation (section 96). But if none of these elements are present then no criminal offence has been committed.
Second, there may be insufficient evidence to prove elements of the offence. The section 50A offences require that racial aggravation be proved by evidence drawn from two different sources (the requirement of corroboration). If, for instance, only the complainer heard the racist remarks corroboration is lacking and the case falls. Third, the behaviour may be criminal (for example, vandalising cars) but it may not be possible to prove, for the purposes of section 96, that it was racially aggravated. The fact that only people from one minority ethnic group had their cars vandalised may suggest that the offences were racially motivated but a court might require more concrete evidence, such as racist graffiti or racist language immediately before, during or directly after the offence."
To show racism, it would have to be proved the cyclist was racist and not just being rude because he had been knocked off his bike.