A quick Google search ("fashion aid freddie mercury") yields some informative results, including a pretty old QueenZone thread. Read all about it! link
To answer you're question, it's in 1985, which would have been my first guess watching the clip. Looks like Freddie's having a good time and looking great.
Not real sure what Fashion Aid is. It appears to be affiliate with Live Aid, so I suppose it's some sort of benefit fashion show?