The Human Rights Act 1998 incorporates the European Convention on Human Rights into British law. Article 14 of the Convention prohibits discrimination in the enjoyment of Convention rights on grounds including race. Protocol 1, Article 1 protects the right to peaceful enjoyment of possessions, which courts have interpreted to include protection against discriminatory taxation.
A race-based levy would face challenge under both provisions. The government would need to demonstrate that the discrimination was justified by a legitimate aim and proportionate to that aim. Courts have consistently held that racial classifications in taxation are extremely difficult to justify, and the government would be unlikely to succeed in defending such a challenge.
