In October 2005 Holdsworth resigned from the Party Chairmanship and NEC only to return as Chairman and NEC member a day later. However, following further internal difficulties she resigned again on 15 October, just days ahead of the Party Conference. She had, a few months before, stated her intention to resign to the then party leadership. Her stated reason for this was not because of disputes with Mr Nattrass.
Her resignation was due to disagreements with UKIP's deputy leader Mike Nattrass. She remains a member of the party.
In May 2006 Holdsworth announced her intention to run for leader of UKIP. However, she later withdrew her candidacy.