Godfrey Bloom will sit as an independent MEP until next year's European election but has not quit Ukip. Mr Bloom was stripped of the party whip after offensive remarks he made about women at a party event and an altercation with a TV journalist.
UK Independence Party leader Nigel Farage has strongly denied claims that he was viewed as "racist" and "fascist" when at school.
Channel 4 News said it had obtained a 1981 letter expressing concerns that he was being made a prefect at Dulwich College despite worries about his views.
The letter is said to detail allegations including a young Mr Farage having "marched through a quiet Sussex village very late at night shouting Hitler youth songs".
Mr Farage described the Hitler Youth song allegation as "baloney", but admitted he said some "ridiculous things" as a "bolshy teenager":
"Was I a difficult, bolshy teenager who pushed the boundaries of debate further than perhaps I ought to have done?
"Have I ever been a member of any extremist organisation left or right? No."
When asked if he ever made racist comments at school, the Ukip leader said: "Not necessarily racist things. It depends how you define it."
The UK Independence Party has removed the whip from MEP Godfrey Bloom after he called women "sluts" a fringe event.
The Ukip MEP Godfrey Bloom has a history of gaffes and controversies. Here are eight of them.