diff --git a/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/ControlStructureTypingVisitor.java b/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/ControlStructureTypingVisitor.java
index 5f3c9d447db..31409cf1a38 100644
--- a/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/ControlStructureTypingVisitor.java
+++ b/compiler/frontend/src/org/jetbrains/jet/lang/types/expressions/ControlStructureTypingVisitor.java
@@ -522,18 +522,16 @@ public class ControlStructureTypingVisitor extends ExpressionTypingVisitor {
             SimpleFunctionDescriptor functionDescriptor = context.trace.get(FUNCTION, labelTargetElement);
             if (functionDescriptor != null) {
                 expectedType = DescriptorUtils.getFunctionExpectedReturnType(functionDescriptor, labelTargetElement);
-                boolean inLambdaWithNoExplicitType = expectedType == TypeUtils.NO_EXPECTED_TYPE;
-                if (inLambdaWithNoExplicitType) {
-                    // expectedType is NO_EXPECTED_TYPE iff the return type of the corresponding function descriptor is not computed yet
-                    // our temporary policy is to prohibit returns in this case. It mostly applies to local returns in lambdas
-                    context.trace.report(RETURN_NOT_ALLOWED_EXPLICIT_RETURN_TYPE_REQUIRED.on(expression));
-                    resultType = ErrorUtils.createErrorType(RETURN_NOT_ALLOWED_MESSAGE);
-                }
-                else if (functionDescriptor != containingFunctionDescriptor) {
+                if (functionDescriptor != containingFunctionDescriptor) {
                     // Qualified, non-local
                     context.trace.report(RETURN_NOT_ALLOWED.on(expression));
                     resultType = ErrorUtils.createErrorType(RETURN_NOT_ALLOWED_MESSAGE);
                 }
+                else if (expectedType == TypeUtils.NO_EXPECTED_TYPE) {
+                    // expectedType is NO_EXPECTED_TYPE iff the return type of the corresponding function descriptor is not computed yet
+                    // our temporary policy is to prohibit returns in this case. It mostly applies to local returns in lambdas
+                    context.trace.report(RETURN_NOT_ALLOWED_EXPLICIT_RETURN_TYPE_REQUIRED.on(expression));
+                }
             }
             else {
                 context.trace.report(NOT_A_RETURN_LABEL.on(expression, expression.getLabelName()));
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/return/LocalAndNonLocalReturnInLambda.kt b/compiler/testData/diagnostics/tests/functionLiterals/return/LocalAndNonLocalReturnInLambda.kt
index 2141d0cdbc4..e1983714617 100644
--- a/compiler/testData/diagnostics/tests/functionLiterals/return/LocalAndNonLocalReturnInLambda.kt
+++ b/compiler/testData/diagnostics/tests/functionLiterals/return/LocalAndNonLocalReturnInLambda.kt
@@ -1,8 +1,9 @@
 fun test2(a: Int) {
-    (run @f{
+    val x = run @f{
       if (a > 0) <!RETURN_NOT_ALLOWED!>return<!>
       <!RETURN_NOT_ALLOWED_EXPLICIT_RETURN_TYPE_REQUIRED!>return@f 1<!>
-    }): Int
+    }
+    x: Int
 }
 
 fun run<T>(f: () -> T): T { return f() }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnExplicitLabelNoParens.kt b/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnExplicitLabelNoParens.kt
index ff517b875f1..f771704f813 100644
--- a/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnExplicitLabelNoParens.kt
+++ b/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnExplicitLabelNoParens.kt
@@ -1,5 +1,6 @@
 fun test2() {
-    (run @f{<!RETURN_NOT_ALLOWED_EXPLICIT_RETURN_TYPE_REQUIRED!>return@f 1<!>}): Int
+    val x = run @f{<!RETURN_NOT_ALLOWED_EXPLICIT_RETURN_TYPE_REQUIRED!>return@f 1<!>}
+    x: Int
 }
 
 fun run<T>(f: () -> T): T { return f() }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnExplicitLabelParens.kt b/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnExplicitLabelParens.kt
index e9fbb39b72a..0f5c1340181 100644
--- a/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnExplicitLabelParens.kt
+++ b/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnExplicitLabelParens.kt
@@ -1,10 +1,12 @@
 fun test() {
-    run(@f{<!RETURN_NOT_ALLOWED_EXPLICIT_RETURN_TYPE_REQUIRED!>return@f 1<!>}): Int
+    val x = run(@f{<!RETURN_NOT_ALLOWED_EXPLICIT_RETURN_TYPE_REQUIRED!>return@f 1<!>})
+    x: Int
 }
 
 
 fun test1() {
-    run(@{<!RETURN_NOT_ALLOWED_EXPLICIT_RETURN_TYPE_REQUIRED!>return@ 1<!>}): Int
+    val x = run(@{<!RETURN_NOT_ALLOWED_EXPLICIT_RETURN_TYPE_REQUIRED!>return@ 1<!>})
+    x: Int
 }
 
 fun run<T>(f: () -> T): T { return f() }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnInNestedFunction.kt b/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnInNestedFunction.kt
index 20b4c2f540c..7f262734dc9 100644
--- a/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnInNestedFunction.kt
+++ b/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnInNestedFunction.kt
@@ -1,11 +1,12 @@
 fun test() {
-    (run @f{
+    val x = run @f{
       fun local(a: Int): String {
         if (a > 0) return "2"
         return@local "3"
       }
       <!RETURN_NOT_ALLOWED_EXPLICIT_RETURN_TYPE_REQUIRED!>return@f 1<!>
-    }): Int
+    }
+    x: Int
 }
 
 fun run<T>(f: () -> T): T { return f() }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnInNestedLambda.kt b/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnInNestedLambda.kt
index e435d501e08..ae5a9010b5c 100644
--- a/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnInNestedLambda.kt
+++ b/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnInNestedLambda.kt
@@ -1,10 +1,11 @@
 fun test() {
-    (run @f{
+    val x = run @f{
       run @ff {
         <!RETURN_NOT_ALLOWED_EXPLICIT_RETURN_TYPE_REQUIRED!>return@ff "2"<!>
       }
       <!RETURN_NOT_ALLOWED_EXPLICIT_RETURN_TYPE_REQUIRED!>return@f 1<!>
-    }): Int
+    }
+    x: Int
 }
 
 fun run<T>(f: () -> T): T { return f() }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnUnit.kt b/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnUnit.kt
index ac427a12443..18edcdb3aa9 100644
--- a/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnUnit.kt
+++ b/compiler/testData/diagnostics/tests/functionLiterals/return/LocalReturnUnit.kt
@@ -1,8 +1,9 @@
 fun test(a: Int) {
-    (run @f{
+    val x = run @f{
       if (a > 0) <!RETURN_NOT_ALLOWED_EXPLICIT_RETURN_TYPE_REQUIRED!>return@f<!>
       else <!RETURN_NOT_ALLOWED_EXPLICIT_RETURN_TYPE_REQUIRED!>return@f Unit.VALUE<!>
-    }): Unit
+    }
+    x: Unit
 }
 
 fun run<T>(f: () -> T): T { return f() }
\ No newline at end of file
diff --git a/compiler/testData/diagnostics/tests/functionLiterals/return/MixedReturnsFromLambda.kt b/compiler/testData/diagnostics/tests/functionLiterals/return/MixedReturnsFromLambda.kt
index c677309489a..1cc33e72fb3 100644
--- a/compiler/testData/diagnostics/tests/functionLiterals/return/MixedReturnsFromLambda.kt
+++ b/compiler/testData/diagnostics/tests/functionLiterals/return/MixedReturnsFromLambda.kt
@@ -4,10 +4,11 @@ trait C: A
 
 
 fun test(a: C, b: B) {
-    (run @f{
+    val x = run @f{
       if (a != b) <!RETURN_NOT_ALLOWED_EXPLICIT_RETURN_TYPE_REQUIRED!>return@f a<!>
       b
-    }): A
+    }
+    x: A
 }
 
 fun run<T>(f: () -> T): T { return f() }
\ No newline at end of file