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Clearing stoned area for new lawn

Hi, I'm looking for a little help from more experienced hands about preparing soil for laying grass turf

We have a section of stones between our house and existing lawn and we wish to remove the stones and extend the grassed area, which is used for kids playing on.

It hasn't rained much lately and I have removed most of of the surface stones by just brushing them off. Below that is about an inch of small stone/gravel, which I read on the forums isn't crucial to remove all.

I've tried to break up the ground and dig it over, but the soil is very compacted. It's easy enough to stick a fork through, but it's very lumpy when I break it up. 

Is there a trick to break the lumps down? Or should I remove them and replace with fresh topsoil? 

Thanks
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