The man who bought BHS for a pound from Sir Philip Green has reportedly been arrested over unpaid tax.

Dominic Chappell was allegedly arrested for failing to pay more than £500,000 tax on money from the department store, according to the Sunday Times.

A spokeswoman for HM Revenue & Customs said: “We do not comment on identifiable cases, but can confirm we arrested a 49-year-old businessman”.

She said the arrest happened on 2 November.

Sir Philip Green reacts angrily to questions from Sky News Video: Sky News tries to talk to Sir Philip Green

The Pensions Regulator also began action against Sir Philip and Mr Chappell on the same day “to seek redress on behalf of the BHS pension schemes”.

The watchdog is said to be targeting a £350m payment after the collapse of BHS in April left a £571m deficit in the company’s pension scheme, which has 20,000 members.