diff --git a/src/passes/2-simplify/pascaligo.ml b/src/passes/2-simplify/pascaligo.ml
index 63f9d8e70..06a428230 100644
--- a/src/passes/2-simplify/pascaligo.ml
+++ b/src/passes/2-simplify/pascaligo.ml
@@ -41,13 +41,28 @@ let detect_free_variables (for_body : expression) (local_decl_names : string lis
       | E_assign ( name , _ , _ ) ->
         if is_compiler_generated name then ok prev
         else ok (name::prev)
+      | E_constant (n, [a;b])
+        when n="OR" || n="AND" || n="LT" || n="GT" ||
+             n="LE" || n="GE"  || n="EQ" || n="NEQ" -> (
+          match (a.expression,b.expression) with
+          | E_variable na , E_variable nb -> 
+            let ret = [] in
+            let ret = if not (is_compiler_generated na) then
+              na::ret else ret in
+            let ret = if not (is_compiler_generated nb) then
+              nb::ret else ret in
+            ok (ret@prev)
+          | E_variable n , _ 
+          | _            , E_variable n ->
+            if not (is_compiler_generated n) then
+            ok (n::prev) else ok prev
+          | _ -> ok prev)
       | _ -> ok prev )
     []
     for_body in
   ok @@ SSet.elements
      @@ SSet.diff (SSet.of_list captured_names) (SSet.of_list local_decl_names)
 
-
 module Errors = struct
   let unsupported_cst_constr p =
     let title () = "constant constructor" in
@@ -1125,11 +1140,14 @@ and simpl_for_collect : Raw.for_collect -> (_ -> expression result) result = fun
   let elt_v_name = match fc.bind_to with
     | Some v -> "#COMPILER#elt"^(snd v).value
     | None -> "#COMPILER#elt_unused" in
+  let element_names = ok @@ match fc.bind_to with 
+    | Some v -> [fc.var.value;(snd v).value]
+    | None -> [fc.var.value] in
   (* STEP 1 *)
   let%bind for_body = simpl_block fc.block.value in
   let%bind for_body = for_body None in
   (* STEP 2 *)
-  let%bind local_decl_name_list = detect_local_declarations for_body in
+  let%bind local_decl_name_list = bind_concat (detect_local_declarations for_body) element_names in
   let%bind captured_name_list = detect_free_variables for_body local_decl_name_list in
   (* STEP 3 *)
   let add_to_record (prev: expression type_name_map) (captured_name: string) =
diff --git a/src/test/contracts/loop.ligo b/src/test/contracts/loop.ligo
index 9027dc1cb..50e87da04 100644
--- a/src/test/contracts/loop.ligo
+++ b/src/test/contracts/loop.ligo
@@ -178,3 +178,16 @@ function nested_for_collection_local_var (var nee : unit) : (int*string) is bloc
 function dummy (const n : nat) : nat is block {
   while False block { skip }
 } with n
+
+function inner_capture_in_conditional_block (var nee : unit) : bool*int is block {
+  var count : int := 1 ;
+  var ret : bool := False ;
+  var mylist : list(int) := list 1 ; 2 ; 3 end ;
+  for it1 in list mylist block {
+    for it2 in list mylist block {
+      if count = it2 then ret := not (ret)
+      else skip;
+    };
+    count := count + 1;
+  }
+} with (ret,count)
\ No newline at end of file
diff --git a/src/test/integration_tests.ml b/src/test/integration_tests.ml
index b509a845f..2a7370845 100644
--- a/src/test/integration_tests.ml
+++ b/src/test/integration_tests.ml
@@ -845,6 +845,9 @@ let loop () : unit result =
     let expected = e_pair (e_int 24)
       (e_string "123123123") in
     expect_eq program "nested_for_collection_local_var" input expected in
+  let%bind () =
+    let expected = e_pair (e_bool true) (e_int 4) in
+    expect_eq program "inner_capture_in_conditional_block"  input expected in
   let%bind () =
     let ez lst =
       let open Ast_simplified.Combinators in
diff --git a/vendors/ligo-utils/simple-utils/trace.ml b/vendors/ligo-utils/simple-utils/trace.ml
index b15a05e1d..04f8b511d 100644
--- a/vendors/ligo-utils/simple-utils/trace.ml
+++ b/vendors/ligo-utils/simple-utils/trace.ml
@@ -567,6 +567,11 @@ let bind_fold_smap f init (smap : _ X_map.String.t) =
 
 let bind_map_smap f smap = bind_smap (X_map.String.map f smap)
 
+let bind_concat (l1:'a list result) (l2: 'a list result) =
+  let%bind l1' = l1 in
+  let%bind l2' = l2 in
+  ok @@ (l1' @ l2')
+
 let bind_map_list f lst = bind_list (List.map f lst)
 let rec bind_map_list_seq f lst = match lst with
   | [] -> ok []