It will work (sort of). Shellite (aka naptha in US) evaporates really quickly so you don't get a lot of "viewing time".
Metho also has a quick evap time, but slower than shellite.
If you're going to be using water based dye, I would avoid turps. It may be fine, and ftr I have no evidence to support my thinking, but I always try and minimise anything that might cause incompatibility issues when it comes to finishing.
If you're going to use alcohol based dye, I don't feel it's an issue. eg: Feast Watson Proof Tint is alcohol based and can be used to tint oil based polyurethane.