diff --git a/clippy_lints/src/loops/never_loop.rs b/clippy_lints/src/loops/never_loop.rs
index 62bc663191f..245a903f998 100644
--- a/clippy_lints/src/loops/never_loop.rs
+++ b/clippy_lints/src/loops/never_loop.rs
@@ -201,12 +201,12 @@ fn never_loop_expr<'tcx>(
                 })
             })
         },
-        ExprKind::Block(b, l) => {
-            if l.is_some() {
+        ExprKind::Block(b, _) => {
+            if b.targeted_by_break {
                 local_labels.push((b.hir_id, false));
             }
             let ret = never_loop_block(cx, b, local_labels, main_loop_id);
-            let jumped_to = l.is_some() && local_labels.pop().unwrap().1;
+            let jumped_to = b.targeted_by_break && local_labels.pop().unwrap().1;
             match ret {
                 NeverLoopResult::Diverging if jumped_to => NeverLoopResult::Normal,
                 _ => ret,
diff --git a/tests/ui/never_loop.rs b/tests/ui/never_loop.rs
index c67a6d4494e..92f173d9db4 100644
--- a/tests/ui/never_loop.rs
+++ b/tests/ui/never_loop.rs
@@ -1,4 +1,4 @@
-#![feature(inline_const)]
+#![feature(inline_const, try_blocks)]
 #![allow(
     clippy::eq_op,
     clippy::single_match,
@@ -400,6 +400,15 @@ pub fn test32() {
     }
 }
 
+pub fn issue12205() -> Option<()> {
+    loop {
+        let _: Option<_> = try {
+            None?;
+            return Some(());
+        };
+    }
+}
+
 fn main() {
     test1();
     test2();