icowden
Squire
In the US it was because segregation referred to any non-white as "coloured" so it carries some racist hand baggage. In the UK it is more that it's just a bit archaic, and also does carry a little bit of that racist hand baggage. Terms tend to get reinvented once they are being used as pejoratives. We used to use handicapped a term which implies limited function. In America they like "people of color" but over here we don't. The least racist term is to describe what you see. I'm white, he's black, she's brown. You will often hear comedians such as NIsh Kumar refer to themselves as "brown".IWhy is 'coloured' any worse or better than 'person of colour' for example, clearly names meant as an insult have always been meant that way but for example half caste is now wrong but was never meant as a slur.
Most of the time in the UK though we tend just to use people's names.