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Mark Menzies, who was suspended by the Conservative Party over allegations he misused campaign funds, is to quit as an MP at the next election.
Mr Menzies also confirmed he has left the Tory Party, which said he had shown a "pattern of behaviour that falls below the standards expected of MPs".
It said it could not conclude there had been a misuse of party funds after an internal investigation.
The announcement does not mean there will be an immediate by-election.
In a statement, Mr Menzies said he was standing down as the MP for Fylde in Lancashire "due to the pressures on myself and my elderly mother".
He continued: "This has been a very difficult week for me and I request that my family's privacy is respected."
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