Usage and Disposal
In general, there are no prescriptions regarding the use and disposal of the flag in a manner akin to the United States Flag Code. This reflects its largely unofficial status as a national flag. There is no contemporary national concept of flag desecration. There is also no specific way in which the Union Flag should be folded as there is with the United States Flag. It should simply be folded ready for the next use.
Royal Navy Stores Duties Instructions, article 447, dated 26 February 1914, specified that flags condemned from further service use were to be torn up into small pieces and disposed of as rags (ADM 1/8369/56), not to be used for decoration or sold. The exception was flags that had flown in action: these could be framed and kept on board, or transferred to a "suitable place", such as a museum (ADM 1/8567/245).
Read more about this topic: Union Jack
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