Until yesterday, Angela Reid, 50 - whose late father played car dealer Frank Butcher - was set to contest a vacant seat on Braintree District Council in Essex.
But in a dramatic u-turn, Reid scrapped her bid for a political career when the identity of her father was revealed.
'Angela is a respectable, middle-aged woman and we will see what we can do with regards to what votes we can get,' said BNP deputy leader Simon Darby.
'It's not going to be a hindrance - Mike Reid was a very popular bloke.'
Ms Reid's husband Kenneth Gamble confirmed that his wife had withdrawn from her candidacy.
'She has cancelled her candidacy because she's Mike Reid's daughter and people would call her a Nazi and slag her off,' he said outside the couple's Braintree home.
'It's got nothing to do with politics, she is adamant about that. She is still a member and still agrees with everything we stand for, it's personal circumstances, family circumstances that have come up.
'She feels she is not capable of taking on the extra responsibility being a councillor entails. It is really bad timing.