I don't think that the same thing.
The way it works is that - if your holiday year is from 1 January to 31 December- then if you were giving in your notice now to take effect say on 31 March, you would only have earned 3 months-worth of holiday, i.e. a quarter of your allocation.
If you are owed 2 weeks holiday which you haven't taken, then some employers say that you have to take that before your notice, others will pay in on top of your final pay.
I think that the paragraph you have quoted is a different thing, which means that if they want to give you notice (not the other way round), they have the right to pay you off and make you leave at once, in which case you don't get any holiday adding up for the period you're being paid off for.
Does that make sense? (it does to me but I'm quite familiar with this in my organisation - others will be different)