The British Empire went from initially very liberal (18'th century Enlightenment ideals) and then toward the end of the 19'th century became extremely racist, bigoted and religiously intolerant. This was all due to social trends in England itself. And like a resonance box whatever the British parliament ruled it had an amplified more extreme interpretation in the colonies. So the correct answer is that the British Empire was both on the extreme ends of liberalism and intolerance, depending on what time period you look at.
It is interesting how Evangelical Christianity was aggressively promoted in India in the end of the 19'th century in a way that wasn't making the British government any friends. It's like they were going out of their way to humiliate and provoke their Indian subjects as much as possible. For no benefit to England. In hindsight it was a completely pointless provocation and did prove to make India a hell of a lot less stable.
When the world's most wealthy and powerful nation is run by religious evangelists, there is a vicious circle that emerges whereby the folks at home have wealth and power as clear evidence that they are favoured by God; and so they feel totally justified in comitting any atrocities they feel will further empower or enrich them, as long as those atrocities are done half a world away, so that the folks back home can maintain the illusion that they are a force for good in the world.
Eventually though, you piss off enough of the world with your moralising crusade that is in stark contrast to your immoral behaviour, that the foreigners increasingly seek to do violence against you; which comes as a shock, as it flies in the face of your belief that you are a shining beacon of virtue in a harsh and cruel world.
You invade nations that have materials you want for your economy, and find that, surprisingly, the inhabitants do not greet you as liberators, and instead revolt against your misrule.
Of course, that sort of thing only happened to the British Empire in the 19th century. It wouldn't happen again, would it?