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Telling employer about new job before handing notice in
I was in the same situation last year.I had been offered a new job subject to references etc,one of which had to be from my current employer.I sat down with my boss and explained it to him.Luckily it went well,he wrote me a good reference and once I knew my new employer had accepted the references I handed my notice in.
I will potentially be in a similar situation. However I am not yet at the stage of security checks. My employer will not be happy to learn of me leaving and I think thry will be difficult about it. If I get to the point of security checks I intend to discuss it with my potential new employer to come to an arrangement. I would think this issue is a fairly common occurance for them.
Your new employer will be doing pre employment checks, a part of those checks will be reference checks so yes you will need to tell your manager unless you want them to find out that you're potentially leaving via email.
I don't see what the problem is, people leave and move on employers actually expect it.