From FOTW ([1]):

The official model was (and still is) that the wreath [around the disc] sits half on and half off the outer edge of the disc. In practice a lot of flags were made with the wreath completely within the disc simply because this was easier to make. The modern specification is that the outer diameter of the gold ring is now 55% of the flag width, and the ring is 2.34% of the flag width thick. The wreath is approximately 4% of the flag width wide, so you can see that it doesn't overlap the inner edge of the gold ring. Graham Bartram, 28 May 2005

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