London: A British teenager has been charged with inciting terrorism after allegedly encouraging another person to behead an Australian.

Prosecutors in London said yesterday that following an investigation by police in the North West Counter Terrorism Unit, they had authorised charges for a 14-year-old male of two offences of inciting terrorism overseas.

"The first allegation is that, between 15 and 26 March 2015, the defendant incited another person to commit an act of terrorism, namely to carry out an attack at an Anzac parade in Australia with the aim of killing and/or causing serious injury to people," said Deborah Walsh, deputy head of counter-terrorism at the Crown Prosecution Service, in a statement on Thursday evening.