makes me wonder what some of you guys have been taught
first, there is no such licence as a frozen ATPL. it's a term coined to save a wannabe writing that they had a CPL, ME(IR) and MCC certificate. the licence you get initially is a CPL. this as stated above needs to be renewed every 5 years. no skills test just a fee to the CAA who issue you another CPL. and yes, the licence is still blue.
on that said licence is a rating section. this will include you SEP, MEP and IR rating. these are what must be renewed or revalidated to exercise the privilidges contained.
the ATPL exams, once passed, suffice as the theory requirements for both the CPL and IR issue. it is true (as stated above) that you have three years from passing the last exam to gaining an IR. after three years, you will need to sit the Instrument Rating part of the exams again. Also, if your IR has lapsed by more than seven years then you will need to undertake the IR theory exams again before you can hold an IR.
as such, there is no renewal of the atpl exams. you need just need to keep your IR going to keep the ATPL credits
redout: what your instructor told you is complete toilet.