Farage, 52, said he felt he had done all he could to achieve a vote for the UK to leave the EU in a referendum on June 23 and now he wanted "his life back".
"I now feel that I've done my bit, that I couldn't possibly achieve more," said Farage, who was elected as a Member of the European Parliament (MEP) for the party in 1999.
"I feel it's right that I should now stand aside as leader of UKIP," he told reporters at a press conference here.
"I have never been and never wanted to be a career politician," he added.
Farage, who had led a separate grassroots campaign to convince voters of a 'Brexit', had made numerous speeches in the wake of the result to declare June 23 Britain's "Independence Day."
He said he now wants a cross party team to negotiate the UK's exit from Brussels but he said the most important thing was that the team knows how to win the best deal.
"An absolute priority is to bring in business people," he added.
He has had two stints as leader of the Eurosceptic party since 2006.
Britain on June 23 voted to leave the 28-member economic bloc in a historic referendum, in which 52% voted to 'Leave' while 48% sided with the 'Remain' camp.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
)