Peeling and flaking of a new tattoo is perfectly normal. Before it actually begins to peel, the tattoo will look like it's covered with a whitish, cracking film. Then you'll see white or translucent flakes of old, dead skin start to peel off and some of the flakes may even contain some ink.
Sometimes you can actually see a duplicate image of part of your tattoo peeling off—it's rather disconcerting, but it is also perfectly normal and there is no need to panic.
It's a lot like a snake shedding its skin. Just add a little lotion to the tattoo to help keep it moist and encourage those flakes to come off. Do not scratch, pick or peel them. It will all be done in a few days and the color of your tattoo will start to return to normal.