UK election: What happens next?

Penalty kicks?

London, England (CNN) — The closest-fought UK election in decades will result in a hung parliament in which neither of the two biggest parties has a clear majority that would allow it to pass legislation.

The latest projections are that David Cameron’s Conservatives will win more than 300 seats — but will be short of a certain majority in the 650-seat House of Commons.

So who will form the next government?

No one really knows yet which party will form the next government and there is great uncertainty about the immediate future, causing sterling to fall against other currencies.

There is no written constitution in Britain, but convention has it that a sitting prime minister has the right to try to form a coalition government before the opposition leader.

Whatever happens, a PM remains in power until his or her party is defeated in the Commons or admits defeat and travels to Buckingham Palace to resign to Queen Elizabeth, who is the head of state. In that case, the monarch would invite the leader of the biggest party, which is now the Conservatives, to try to form a government.