In this paper, the effect of both passive and actively-modified vehicle handling characteristics on minimum time manoeuvring for vehicles with 4-wheel torque vectoring (TV) capability is studied. First, a baseline optimal torque vectoring strategy is sought, independent of any causal control law. An optimal control problem (OCP) is initially formulated considering 4 independent wheel torque inputs, together with the steering angle rate, as the control variables. Using this formulation, the performance benefit using torque vectoring against an electric drive train with a fixed torque distribution, is demonstrated. The sensitivity of TV-controlled manoeuvre time to the passive understeer gradient of the vehicle is then studied. A second formulation of the optimal control problem is introduced where a closed-loop torque vectoring controller is incorporated into the system dynamics of the OCP. This formulation allows the effect of actively modifying a vehicle's handling characteristic via TV on its minimum time cornering performance of the vehicle to be assessed. In particular, the effect of the target understeer gradient as the key tuning parameter of the literature-standard steady-state linear single-track model yaw rate reference is analysed.