Further questioning
Tibetan exiles have staged regular protests in Kathmandu and have frequently been detained.
Mr Holland is believed to be the first foreigner expelled during the current clampdown in Nepal on anti-China activities.
He was stopped and searched on Everest last week and officials found a pro-Tibet banner in his bags, they say. He was then told he could not stay on the mountain.
On his return to Kathmandu he faced further questioning and was then deported on Monday.
Nepal says that Tibet is part of China and has been working with China to minimise the chances of any pro-Tibet protests on Everest.
The BBC's Charles Haviland in Nepal says China's ambassador there visited the Everest base camp a few days ago with Nepalese army officers.
Several Chinese officials visited villages lower down the mountain a few weeks ago and eyewitnesses say they are now back.
Our correspondent was ordered to leave base camp on Monday in part of concerted efforts to prevent any media reporting from the area.
The Chinese are expected to take the flame up the mountain when the weather improves.