Enabling recompute tangents on a skeletal mesh does not recompute tangent normals for translated parts of the skelmesh.
If you add
r.SkinCache.CompileShaders=1 
r.SkinCache.Mode=1 
r.SkinCache.RecomputeTangents=1 Do not access these cvars directly
to the console variables.ini Recompute tangents will correctly work.
There's no existing public thread on this issue, so head over to Questions & Answers just mention UE-38398 in the post.
| 1 | 
| Component | UE - Graphics Features | 
|---|---|
| Affects Versions | 4.14 | 
| Target Fix | 4.14 | 
| Created | Nov 9, 2016 | 
|---|---|
| Resolved | Nov 9, 2016 | 
| Updated | May 2, 2018 |