I'm a UK citizen born in Austria (my parents are both UK citizens - father born in the UK and mother in India). I have a British birth certificate and a British passport. I now live in Austria and have given birth to a daughter. Is she entitled to a UK passport?
So the question is really whether the child is a British citizen, as only British nationals can get a British passport.
From your description, you are a British citizen "by descent", because you were born outside the UK, and you were automatically a British citizen at birth due to your father being born in the UK. As such, you cannot pass on British citizenship at birth to your child born outside the UK, as only British citizens "otherwise than by descent" can do that. In other words, British citizenship only extends automatically to the first generation born abroad.
Under certain circumstances, you can register your child while still a minor to become a British citizen. From the UK Home Office Guide MN1 (Jan 2017):
- Section 3(2) registration: This requires that the child have a grandparent who is a British citizen "otherwise than by descent" (which your child has), and that you have lived in the UK for a continuous period of 3 years (during which absences did not exceed 270 days) some time in your life before the child's birth. A child registered under this section becomes a British citizen "by descent".
- Section 3(5) registration: This requires that the child and both parents have lived in the UK for the 3 years immediately prior to application. (In other words, this requires that your family move to the UK first, with the child holding a non-citizen status.) A child registered under this section becomes a British citizen "otherwise than by descent".