Peter Tillott once featured on Channel 5’s Cowboy Builders programme.
He was jailed for four years in March 2012 after HM Revenue and Customs discovered the scam.
Tillott submitted VAT returns listing property purchases and building supplies that never took place, set up dummy companies, used stolen identities and supplied false documentation to support his claims.
Robert Alder, Assistant Director, HMRC Criminal Investigation, said: “Tillott’s greed led to him spending vast amounts on improvements to his own property.
“He even continued his fraudulent activities after he was arrested.
“Our work does not end at identifying and tackling fraud – we also pursue the proceeds of crime, so that criminals do not benefit from their activities.
“This sends a clear warning – we will pursue you for your crimes, and then we will pursue you for your illicit gains.”
Tillott received £1.4m of the £3.04m he reclaimed in respect of his six companies in Buckinghamshire and Middlesex.
He admitted cheating the public revenue and was sentenced at Southwark Crown Court in March 2012.
He must repay the £1.3m by 1 November 2013 or face a further 10 years in prison.